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2017 (7) TMI 1257 - ITAT KOLKATABenefit of deduction u/s 54F - Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house - Long term capital gains - Reliance of ‘full value of consideration’ as mentioned in section 50C - Held that:- Language of section 54F explaining the meaning of ‘net consideration’ is very clear expecting an assessee to reinvest only the actual consideration received by the assessee and not the deemed value of consideration u/s 50C. The deeming fiction as provided in section 50C in respect of the words ‘full value of consideration’ is to be applied only to section 48 and therefore, meaning of ‘full value of consideration’ as referred to in Explanation to Section 54F(1) is not governed by the meaning of the words ‘full value of consideration’ as mentioned in section 50C. The provisions of section 54F of the Act are to be looked independently by ignoring section 50C of the Act. CIT-A had rightly relied on the decision of CIT vs Jagriti Agarwal (2011 (10) TMI 279 - PUNJAB AND HARYANA HIGH COURT) that even if the assessee had deposited the net sale consideration in capital gain account scheme within the due date prescribed u/s 139(4) of the Act for reinvestment in another property, then the assessee should be treated as having satisfied the basic conditions of claiming deduction u/s 54F. The assessee had filed his return of income on 20.3.2012 which is well within the time limit prescribed u/s 139(4) and it is not in dispute that before the date of filing of such return, the assessee had duly deposited the sale consideration in capital gains account scheme. Hence the assessee would be entitled for deduction u/s 54F for the reinvestment made in the new property. There was no occasion for the AO to look into the total amount of reinvestment made by the assessee in new property in terms of section 54F - remand this issue to the file of the AO for the limited purpose of examination of reinvestment of ₹ 6 crores (actual sale consideration received) in new residential property and re-compute the long term capital gains accordingly. - Appeal of revenue allowed for statistical purposes.
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