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2018 (10) TMI 60 - ITAT INDORECapital gain computation - difference between the valuation made by the DVO and the sale consideration shown by the assessee - Held that:- Where the alleged difference between the valuation made by the Ld. DVO and the sale consideration shown by the assessee is only 4.33%, Ld. CIT(A) erred in sustaining the addition of ₹ 8,89,882/-. We therefore direct the A.O to compute the Long Term Capital Gain on the basis of sale consideration of ₹ 2,07,00,000/- disclosed by the assessee. In the result Ground No.1, 2 & 3 of assessee’s appeal are allowed to the extent of deletion of addition of ₹ 8,89,882/-. Restriction of claim of benefit under section 54F to the extent of 33.33% - Held that:- In cases where for the purpose of claiming deduction u/s 54/54F/54B the investment in purchase of residential house/ agriculture land etc is made in the name of his wife or legal heir the benefit should not be denied because the persons are not strangers to the assessee. However in the instant case the other co-owners are not the relatives of the assessee but are partners in the partnership firm. Therefore A.O has rightly limited the benefit to 33.33% of the amount invested in purchase of residential house at ₹ 71,46,348/-. We find no reason to interfere in the findings of Ld.CIT(A). Ground No.4 of the assessee is dismissed. Allowing the benefit u/s 54F only to the extent of amount deposited till the date of filing of return - whether required amount was deposited within the statutory time limit of two years as contemplated u/s 54F? - Held that:- One cannot have any other opinion except that the assessee has to either apply the net consideration for purchase of construction before the due date of filing of return of income or in the alternative deposit the same in the capital gain account. We can understand this provision with an example. For instance if during the financial year 2012-13, sale of immovable property i.e. the capital asset take place on 1.4.2012 and the due date of filing of return of income is 30.9.2013, then the assessee will have 18 months to utilize the net consideration. If for instance the assessee sells capital assets on 31.3.2013 then the assessee will have only 6 months to utilize the consideration for purchase or construction of the property and if the assessee want to claim the benefit u/s 54F of the Act then the remaining unutilized amount to be deposited with the capital gain account with a statutory Bank. We therefore held that the amount eligible for benefit u/s 54F of the Act in the case of the assessee will be to the extent of ₹ 71,46,348/- and the assessee will get the benefit of 33.33% on this amount. - Decided partly in favour of assessee.
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