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2012 (6) TMI 379 - AT - Income TaxSale of office - Long Term Capital Gain or Short Term Capital Gain – Held that:- the date of acquisition in the said property can safely be held to be on 10.06.1999 and the sale was made on 17.09.2004, which fell into Assessment Year 2005-06. Thus from the date of 10.06.1999 till 17.09.2004, the period is of more than 36 months, hence the transaction in question is clearly a 'Long Term Capital Gain' - in the favour of the appellant Cost of acquisition of the property - cost incurred for acquiring the property vide agreement or the market value on the basis of value given by approved valuer – Held that:- the appellant had purchased the said property for a sum of Rs. 4,75,000/- which included the proportionate cost of new building, thus the cost of tenancy right cannot be taken into consideration as contested by appellant, firstly, there was no surrender of tenancy rights and secondly, as per the sub section 2 of section 55, the cost of acquisition of tenancy right has to be taken at Nil – against assessee. Deduction u/s. 54EC - value adopted by the Stamp Valuation Authorities u/s.50C or which was the actual sale value for the purpose of the deduction u/s. 54EC – Held that:- Section 54EC speaks of the actual capital gain which arises out of transfer of Long Term Capital Gain and not deeming amount, whereas section 50C provides for deeming fiction where value of consideration is adopted as per the Stamp Valuation Authorities or any Authority of the State Government - the deemed value cannot be considered for the purpose of exemption u/s 54EC, thus the claim of the appellant u/s. 54EC would be only Rs. 16,00,000/- which is the actual investment in the specified bonds - for the working of the Long Term Capital Gain, the sale consideration will be taken up as per the value determined u/s. 50C which here in this case is at Rs. 24,48,128 as per the value adopted by the Stamp Valuation Authorities.
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