TaxTMI 
TaxTMI 
2017 (7) TMI 1257
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.... 2011-12. 2. The only issue to be decided in this appeal is as to whether the ld CITA was justified in upholding the levy of long term capital gains in the facts and circumstances of the case. 3. The brief facts of this issue is that the assessee is an individual and had filed his return of income for the Asst Year 2011-12 on 20.3.2012 declaring total taxable income of Rs. 55,36,080/- comprising of income from other sources amounting to Rs. 7,36,080/- and capital gains of Rs. 48,00,000/-. In the course of assessment proceedings, the ld AO observed that the assessee had sold commercial property on 4.2.2011 to Prayag Infotech Hi-Rise Ltd, Kolkata for a consideration of Rs. 6 crores and that the same were reinvested in purchase of a ready bu....
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....ined by him instead of specified bank account. Moreover, the due date of filing the return u/s 139(1) of the Act was 31.7.2011 but the assessee filed his return only on 20.3.2012 and till that date, the amount was kept by the assessee in the normal savings bank account. Based on these observations, the ld AO denied the benefit of deduction u/s 54F of the Act amounting to Rs. 4,10,68,863/- ( 1,55,88,863+2,54,80,000). The ld AO further observed that the sale consideration value adopted by the stamp valuation authority was Rs. 9,60,80,616/- and whereas the assessee had declared only Rs. 6,00,00,000/-. Accordingly, by invoking the provisions of section 50C of the Act, he replaced the sale consideration figure at Rs. 9,60,80,616/- as against Rs.....
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....ore, such provision is not an independent provision, but relates to time contemplated under sub-section (1) of section 139. Therefore, sub-section (4) has to be read along with subsection (1). Similar is the view taken by the Division Bench of the Karnataka and Gauhati High Courts in Fatima Bai (2009) 32 DTR 243 and Rajesh Kumar Jalan (2006) 286 ITR 274 (Gauhati) respectively. In view of the above, we find that due date for furnishing the return of income as per section 139(1) of the Act is subject to the extended period provided under sub-section (4) of section 139 of the Act. Consequently, the question of law is answered against the Revenue and in favour of the assessee. Thus, the present appeal is dismissed. The ld CITA by placing relia....
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....60,60,816/- (as against Rs. 6,00,00,000/- declared by the assessee) in accordance with the provisions of section 50C of the Act. Hence the Ground No. 1 raised by the revenue deserves to be allowed. But we hold that the said deemed sale consideration would be relevant only for the purpose of section 48 of the Act as is very clear from the language of section 50C of the Act. For the sake of convenience, the provisions of section 50C of the Act are reproduced below:- Section 50C - Special Provisions for full value of consideration in certain cases . (1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, beign land or building or both, is less than the value adopted or assessed [or a....
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....e assessee has, within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house in India (hereafter in this section referred to as the new asset) , the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say, - (a) if the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45 ; (b) if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the....
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....nsideration received by the assessee and not the deemed value of consideration u/s 50C of the Act. We hold that the deeming fiction as provided in section 50C of the Act in respect of the words 'full value of consideration' is to be applied only to section 48 of the Act and therefore, meaning of 'full value of consideration' as referred to in Explanation to Section 54F(1) of the Act is not governed by the meaning of the words ' full value of consideration' as mentioned in section 50C of the Act. We hold that the provisions of section 54F of the Act are to be looked independently by ignoring section 50C of the Act. We find that the co-ordinate bench of this tribunal in the case of Chandrakala Devi Bansal vs ITO in ITA No. 2481/Kol/2005 dated....