TaxTMI 
TaxTMI 
TaxTMI 
2018 (10) TMI 277
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....2,19,610/- made on account of Long Term Capital Gains by partially disallowing the deduction so claimed u/s 54F of the Income Tax Act, 1961 without appreciating the true facts on wholly misconstrued notions, conjectures and surmises. 2. In conforming the addition of Rs. 12,19,610/- the Ld. CIT (A)'s chose to ignore or rather failed to appreciate the fact and the settled law on this issue that the deduction so claimed was u/s 54F read with Sec.45 of the Act and which requires that the net consideration is required to be invested which has been done and thus the deduction should be allowed keeping in mind the actual sale consideration received and NOT deemed value as per Sec. 50C. 3. That while conforming the addition the Ld. CIT (A....
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....uck down. 5. In conforming the addition the Ld. CIT (A)'s again erred on facts in not been guided by the comparable sale instances filed by the appellant of two plots sold in the immediate vicinity which were even lower than the appellant and thus non consideration of the same has resulted in an arbitrary and biased order which is not at all sustainable in law and needs to be quashed. 6. The addition so sustained is very highly excessive, contrary to facts, laws and principles of natural justice and fair-play and thus may kindly be ordered to be quashed/annulled. 2. The facts in this case, as appearing in the assessment order, are that the assessee sold an agricultural land (capital asset being situated within 8 Kms from the mun....
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....n. It is in this context that the Assessing Officer has held that charging sections to be 45 and 48 of the Act and applicability of section 50C is there, since fair market value was determined by the DVO and, therefore, assessee is not eligible for deduction under section 54F of the Act. 3. When the matter travelled upto the first appellate stage, a detailed written submission was filed by the assessee and the arguments were reiterated before him that it is the net consideration which means full value of consideration received as a result of transfer of capital asset and that will be applicable in their case and deduction under section 54F is allowable since entire net consideration, whatever has received, has been invested in acquiring th....
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..../2011. Ld. A.R. of the assessee vehemently argued that these cases are squarely applicable to the facts and circumstances of the assessee's case and at the same time reiterated the submissions placed before the Revenue authorities. The submission of the ld. A.R. of the assessee was also that charging section in case of capital gain is section 45 and in that section itself there is an exclusion clause that if an assessee's case falls within certain provisions which includes section 54F also, in such circumstances those cases shall be outside the purview of being charged under the head capital gains for the purpose of taxation. It is the submission of the ld. A.R. of the assessee that Revenue has not disputed on the amount that they have rece....
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....e section 50C has been brought into statute. The ld. D.R. also relied on the orders of the authorities below. 7. We have perused the case record and heard the contentions of the parties. On a perusal of provisions of section 50C we find that it specifically mentions that for the purpose of section 48 value adopted was assessed for the purpose of stamp duty shall be deemed to be full value of consideration received or accruing as a result of transfer. Meaning thereby, deeming fiction created in section 50C is limited only to the extent and for the purpose of section 48 and this deeming fiction cannot be extended or interpreted as meant for the purpose of other provisions of the Act including section 54F. Provisions of section 45 is the char....
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....rious judicial pronouncements like in the case of National Aviation Co. of India vs. DCIT [2011] 137 TTJ 662 by Mumbai Bench of the Tribunal and in the case of Jagdish Malpani vs. ACIT [2005] 94 TTJ 321 by Indore Bench of the Tribunal. Now the contention of the assessee is that entire net consideration has been invested in the new house property, therefore, he would be eligible for deduction under section 54F and assessee is not liable to pay any capital gain tax. On perusal of section 54F, what is, therefore, relevant is the investment of the net consideration in respect of original asset which has been transferred and whether net consideration is fully invested in the new asset. The net consideration as determined under section 50C based ....