2018 (8) TMI 513

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....cerning AY 2010-11. 2. The assessee has raised several grounds, however, in essence, is aggrieved by the act ion of the Revenue for restricting the deduction claimed under s.54F to the tune of Rs. 44,31,000/- in place of Rs. 88,62,000/- claimed by the assessee. The assessee has also raised al ternative ground that investment of sale consideration in the new asset has to be reckoned with reference to the actual sale consideration received in place of deemed sale consideration substituted under s. 50C of the Act . 3. Briefly stated, the assessee an individual filed his return of income for AY 2010-11. The return was subjected to scrutiny assessment in pursuance of notice issued under s.148 of the Act. In the course of scrutiny assessment, t....

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....sh Jayantilal Patel and therefore, the appropriation towards purchase of new asset would be deemed to be half of the gross purchase consideration (Rs.82,90,800/-). The deduction was thus computed under s.54F with reference to util izat ion of sale consideration to the extent of Rs. 44,31,000/- only instead of full consideration Rs. 88,62,000/- as claimed by the assessee. The AO accordingly assessed the capital gains at Rs. 19,46,211/-. 4. Aggrieved, the assessee preferred appeal before the CIT(A) seeking relief under s.54F with reference to full amount of purchase consideration invested in the new house. CIT(A) however declined to interfere wi th the order of AO. 5. Aggrieved, the assessee preferred appeal before the Tribunal. 5.1 The le....

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....tion 50C is alien to the provisions of Sect ion 54F and therefore, the assessee is required to invest only the actual consideration (and not deemed sale consideration) in the new asset . 5.3 The learned AR accordingly sought a proper relief in the light of the aforesaid submissions. 5.4 The learned DR, on the other hand, relied upon the order of the lower authorities. 6. We have carefully considered the rival submissions and perused the orders of the authorities below. The first and foremost question that arises for our consideration is whether the deduction 54F of the Act can be restricted in proportion to the number of joint owners in the new asset disregarding the fact of full payment appropriated by the assessee towards such acquisit....