TaxTMI 
TaxTMI 
2020 (4) TMI 660
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....ong Term Capital Gain, which has been enhanced by the Ld. CIT(A) to Rs. 64,07,515/- in place of Rs. 30,17,456/- on account of investment made in purchase of new residential house as provided u/s. 54F(1)(a). 2. At the outset, ld. counsel for the assessee submitted that here in this case, original assessment was completed u/s.143 (3) by determining the total income of Rs. 38,35,743/- after making following two additions / disallowances: 1. Disallowance of claim u/s.54F of the Act - Rs. 30,17,056 2. Disallowance of claim of interest Rs. 18,544 Rs. 30,35,600 3. In the first appeal, the Ld. CIT (A) has not only dismissed the appeal vide order dated 29.03.2013 but has further enhanced the disallowanc....
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....pect of investment of long term capital gain has calculated and worked out the addition of Rs. 30,17,456/- to the income as per working considering the full value of consideration as per Section 50C while determining exemption. The assessee filed appeal before the CIT(A), Ghaziabad. The Ld. AR further submitted that pending the disposal of the appeal filed before the CIT(A), Ghaziabad, a search was conducted on 19.02.2013 by the department at the business premises of the company and also at the residences of the directors. As a result of which the cases were centralized with the ACIT, and likewise, the appeal which was pending with CIT(A), Ghaziabad was transferred to the CIT(A), Kanpur. The CIT(A), Kanpur vide order dated 29.03.2016 whereb....
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....in 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 u/s 54F. Nowhere does it mention consideration as per section 50C. The fiction u/s 50C is extended only to the aspect of computation of capital gains and the same does not extend to the charging section or the exemptions to the charging section. The legislature consciously intended to apply the fiction under Section 50C only to the expression used in section 48 and not in any other place. Section 50C has no effect for calculating exemption u/s 54F. The long term capital gain exemption is admissible u/s 54F(1)(b) of the Act as per working provided by the assessee wherein total taxable gain is Rs.....
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....Visakhapatnam Trib.) v. Nand Lal Sharma vs. ITO [2015] 40 ITR(T) 518 (Jaipur - Trib.) vi. Dhanveer Singh Gambhir vs. ITO, 3(2), Indore [2015] 56 taxmann.com 205 (Indore - Trib.) vii. Prakash Karnawat vs. ITO (2011) 16 taxmann.com 357 (Jaipur) viii. Gyan Chand Batra vs. ITO [2010] 6 ITR(T) 147 (Jaipur) ix. Raj Babbar vs. ITO (2013) 29 taxmann.com 11 (Mumbai Trib.) x. Commissioner of Income Tax vs. George Henderson and Co. Ltd. [1967] 66 ITR 622 (SC) xi. CIT vs. Smt. Nilofer I. Singh (2008) 309 ITR 233 (Delhi HC) xii. ITO vs. Manjit Singh [2010] 128 TTJ 82 (Chandigarh) (UO) xiii. CIT, Panji vs. V. S. Dempo Company Ltd. [2016] 387 ITR 354 (SC) xiv. CIT vs....
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....laim of the assessee for exemption u/s 54F(1)(b) in respect of investment on long term capital gain but instead of taking actual sale consideration received, has adopted the figure of sale consideration by invoking Section 50C. This is not in accordance with the provision of Section 50C which has created a deeming fiction. Section 54F is an exemption provision and it has given its applicability in itself, therefore, Section 50C will not come under picture. The Long Term Capital Gain exemption is admissible u/s 54F(1)(b) of the Income Tax Act, 1961 wherein total taxable gain comes to Rs. 2,68,830/- only as the investment made by the assessee adopting the figure of the actual sale consideration received in consequence with Section 54F of the ....