TaxTMI 
TaxTMI 
2020 (3) TMI 1271
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....ue in this appeal of the assessee against the order of CIT(A) confirming the action of the Assessing Officer in restricting the claim of deduction U/s. 54F of the Income Tax Act, 1961 (in short 'the Act') amounting to Rs. 83,62,888/- as against claimed by the assessee at Rs. 92,35,986/-. For this, assessee has raised various grounds and the relevant grounds raised are as under:- 2. For that the Learned Commissioner of Income Tax (Appeals) erred in confirming the contention of the Assessing Officer in restricting the deduction claimed u/s. 54F of the ct to Rs. 83,62,888/- as against Rs. 92,35,986/- which the assessee is entitled to claim (Tax effect: Rs. 3,24,847/-) 3. For that the Learned Commissioner of Income Tax (Appeals) oug....
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....Officer to adopt the actual sale consideration for the purpose of considering the deduction U/s. 54F of the Act, rather than adopting the value determined by the Sub-Registrar and also directed the Assessing Officer to allow the claim of cost of improvement of Rs. 3,07,946/-. The Assessing Officer while giving appeal effect to the order of ITAT for assessment year 2010-11 in appeal order in ITA No. 402/Mds/2015 dated 29.05.2015, passed order U/s. 254 of the Act, dated 23.07.2015 and restricted the deduction U/s. 54F of the Act, as directed by ITAT at Rs. 83,62,888/- as the investment in the new property was only restricted to the extent of Rs. 83,62,888/-. Aggrieved against the order passed by the Assessing Officer giving effect to the appe....
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....54F of the Act. Before me, the Ld. Counsel for the assessee drew my attention to the provisions of Section 54F of the Act, and the comparative provision of Section 54 of the Act. According to the Ld. counsel, the amount of deduction can be restricted to the amount of capital gain or the cost of new property, whichever is less, only under the provisions of Section 54 and not under Section 54F of the Act. She stated that the amount of deduction which is claimed U/s. 54F of the Act, cannot be restricted to the investment made in the new property. The entire amount of deduction calculated on proportionate basis is fully eligible to be claimed as deduction from capital gains. I noted that this issue has been considered exactly on identical facts....