TaxTMI 
TaxTMI 
TaxTMI 
2026 (2) TMI 416
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....ounting to Rs.21,75,000/- (being 1/6th of Rs.1,30,50,000/-) stood reinvested entirely which entitles the assessee for exemption u/s 54F from whole amount of Long Term Capital Gain as held by the Hon'ble Bench in ITA No. 303/RPR/2024 dated 23.08.2024 in the case of assessee's brother namely Shri Naresh Kumar Shrivastava, hence, it is prayed that the addition of Rs.74,46,583/- made by the Ld. A.O. and confirmed by the Learned CIT(Appeals) may kindly be deleted. 2. On the facts and in the circumstances of the case, the Learned A.O has erred on facts and in law by making an addition of Rs.74,46,538/- on account of Long Term Capital Gain by invoking the provisions section 50C of the Income Tax Act, 1961 which has been further confirmed by the Learned CIT(Appeal), Delhi, despite of the fact that the Learned CIT(Appeal), Delhi in the identical case of the assessee's brother namely Shri Naresh Shrivastava relating to the same property had deleted the addition of Rs.69,13,333/- vide order dated 01.05.2024 in view of determination of FMV at Rs.1,60,31000/- (assessee's 1/6th share being Rs.26,71,833/-) by the Court of Collector of Stamp vide order dated 30.09.2021 and the Hon'ble ITA....
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.... Assessing Officer has correctly invoked Section 50C of the Income Tax Act, 1961 and computed the capital gains by adopting the stamp valuation determined by competent authority. 6.2 The conditions precedent for application of Section 50C are clearly satisfied in this case. The consideration received by the appellant was less than the value adopted by stamp valuation authority for the purpose of payment of stamp duty. The stamp valuation authority, being the Collector of Stamps, is undoubtedly an authority of State Government within the meaning of Section 50C. 6.3 The interaction between Section 50C and Section 54F has been correctly handled by the Assessing Officer. Section 50C applies at the stage of computation of capital gains while Section 54F applies at the stage of granting exemption. The exemption under Section 54F has been allowed on the capital gains computed in accordance with law. 6.4 The appellant has not made any claim under Section 50C(2) before the Assessing Officer, nor has the appellant challenged the stamp valuation under the Stamp Act. Therefore, there was no obligation on the Assessing Officer to refer the matter to Departmental Valua....
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....000/- (@Rs.85,00,000/- per Hectare) for stamp purposes as against the sale consideration of Rs.1,30,50,000/- as per the deed. Further, the Sub-registrar/Stamp Valuation Authority, at the time of registration of the said property, referred the matter to the Collector of Stamps, Raipur under section 47-A(2) of the Indian Stamp Act, 1899. The Collector of Stamps, Raipur partly reduced the value of Stamp Duty from Rs.85,50,000/- Per Hectare to Rs.45,21,011/- Per Hectare. The valuation done by the Collector of Stamps, Raipur was challenged before the Board of Revenue, who vide its decision dated 25.06.2009, held that the value of property @ Rs.32,50,000/- per Hectare for stamp purposes. The said decision of the Board of Revenue was further challenged by the State of Chhattisgarh, through District Registrar, Raipur before the Hon'ble High Court of Chhattisgarh at Bilaspur vide Writ Petition (C) No. 7438 of 2009. who vide order dated 20.09.2011, set aside the order of the Board of Revenue as well as the order passed by the Collector of Stamps and remitted the matter to the Collector of Stamps, Raipur for assessing the value of the said land afresh for stamp purposes. The Collector of Stam....
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....S PD. & Another 281 ITR 305 (SC), Nilofer I Singh 309 ITR 233 (Del), Gouli Mahadevappa 356 ITR 90 (Kar), Gyan Chand Batra 133 TTJ 482 (ITAT, Jaipur), Raj Babbar 56 SOT 1 (ITAT, Mumbai) and Lalit Kumar Kalwar Sarwar 106 ITR (Trbu) 373. 6. On the other hand, the Ld. Sr. DR argued the case vehemently and prayed for dismissal of the appeal. 7. We have heard both parties at length and have perused the material available on the record. The issue in dispute before us are two folds; namely, (i) whether the value of said land at Rs.1,60,31,000/- determined by the Collector of Stamps, Raipur in pursuance of the order of Hon'ble Chhattisgarh High Court (supra) instead of the value of Rs.5,75,11,000/- determined by the Stamp Valuation Authority/Sub-Registrar has to be taken for working out capital gains under section 50C of the Act and whether the entire exemption under section 54F of the Act is allowed on deeming capital gains as it is impossible for the assessee to fulfil the conditions for availing the full exemption in spite of investing the entire net consideration in the eligible asset/residential house. 8. The applicability of provisions of section 50C of the Act is not in disp....
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....d, if it were referred to such authority for the purposes of the payment of stamp duty. (3) Subject to the provisions contained in sub-section (2), where the value ascertained under sub-section (2) exceeds the value adopted or assessed or assessable by the stamp valuation authority referred to in sub-section (1), the value so adopted or assessed or assessable by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer." [Emphasis supplied] 9. On-going through the above provisions of section 50C of the Act, it transpires that where the full value of consideration shown to have been received or accruing on the transfer of a capital asset, being land or building or both, is less than the value adopted or assessed or assessable by stamp valuation authority, the value so adopted or assessed or assessable shall, for the purposes of Section 48 of the Act, be deemed to be full value of consideration received or accruing as a result of such transfer. It is a deeming provision, and it covers land or building or both. It is manifest that a deeming provision has been incorporated to substitute the value adopted o....
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....f the Act. Section 54F of the Act provides exemption in the case of individual or HUF who transfers a long-term capital asset (other than residential house) and reinvests the net sale consideration in acquisition or construction of residential house. The conditions embedded in section 54F of the Act for claiming exemption therein are (i) the capital asset should be long-term (other than residential house); (ii) the assessee within a period of one year before or two years after the date of transfer purchases a residential house; or within a period of three years after the date of transfer constructs a residential house; (iii) the quantum of reinvestment eligible for exemption is with reference to net sale consideration. Where the cost of new asset is not less than net consideration the entire capital gain is deductible and where the cost of new asset is less than net consideration, the proportionate investment in new asset as it bears on the net sale consideration in the same proportion the capital gain would be deductible; (iv) the assessee on the date of transfer of long-term capital asset should not own more than one residential house (other than the new asset) or purcha....