TaxTMI 
TaxTMI 
2019 (9) TMI 906
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.... the value of land determined by the registered valuer of Rs. 40,56,000/-. 6. The Ld. CIT(A) has erred in law and or facts upholding the order of the Ld. AO in not allowing the dedcution u/s 54F amounting to Rs. 96,31,350/- in regards to investment made in land. 7. The appellant craves liberty to add, amend alter or modify all or any grounds of appeal befoe final disposal." 3. The brief facts of the case are that the assessee filed its return of income on 30.08.2012 declaring total income to the tune of Rs. 2,86,22,160/- for the A.Y.2012-13. The return was processed u/s 143(1) of the I.T. Act, 1961. The case was selected for scrutiny. Notices u/s 143(2) & 142(1) of the Act were issued and served upon the assessee. On verification, it was found that the assessee sold a land situated at block no.349 Sim-Ambli, Mouje Gam Taluka Dascroi District- Ahmedabad along with others co-owners at a consideration of Rs. 18,00,00,000/-. The saledeed was got registered on 15.06.2011 in the office of Sub-registrar AHD-3 Memnagar. The assessee received a sum of Rs. 5,90,00,000/- as his share in this transaction. The assessee also furnished the copy of sale deed. The assessee has also submitted t....
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....e A.O. However, we noticed that Ld. CIT(A) has acknowledged the fact that A.O has no power to refer the matter to DVO or reduce the FMV as value. When the power is not with the A.O to reduce the FMV as examined by the assessee as the FMV as on 01.04.1981 and the same to the CIT(A) as well, since the enhancement proceedings are extended assessment proceedings. 8. Considering the fact that Ld. CIT(A) performed the extended assessment proceedings, even though he has co-terminus power to enhance the assessment of income, he cannot apply the same provision on which A.O has no power to refer the matter to DVO in order to reduce the FMV. Ld. CIT(A) Found discrepancies in Valuation Report enhance the assessed income. Therefore, in our opinion, relying on the decision of Hon'ble Jurisdictional High Court in the case of Hiaben Jayantilal Shah Vs. ITO (supra), A.O cannot refer the estimation of FMV to DVO in order to reduce the FMV value adopted by the assessee. In the given case, CIT(A) also do not have any right to redo the, similar action in another method. Accordingly, the enhancement made by the CIT(A) is deleted and grounds raised by the assessee are allowed." 5. The above ment....
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....et, 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 same proportion as the cost of the new asset bears to the net consideration, shall not be charged under section 45: Provided that nothing contained in this sub-section shall apply where- (a) the assessee,- (/) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or (ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or (iii) constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset; and (b) the income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the head "Income from house property".] Explanation.-For the purposes of this section,- "net consideration", in relation to the transfer of a capital asset, me....
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.... amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset: Provided that if the amount deposited under this subsection is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in subsection (1), then,- (i) the amount by which- (a) the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of the new asset as provided in clause (a) or, as the case may be, clause (b) of sub-section (1), exceeds (b) the amount that would not have been so charged had the amount actually utilised by the assessee for the purchase or construction of the new asset within the period specified in sub-section (1) been the cost of the new asset, shall be charged under section 45 as income of the previous year in which the period of three years from the date of the transfer of the original asset expires ; and (//) the assessee shall be entitled to withdraw the unutilised amount in accordance with the scheme aforesaid." 7. Anyhow it is to be seen that ....