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2015 (6) TMI 482 - AT - Income TaxDenial of exemption u/s 54 - deposit of net consideration into capital gain account scheme on 31-03-2009 - Held that:- Section specific reference to sec. 139 cannot be construed only to sec. 139(1) alone but it includes all the sub-section of 139 including 139(4). Therefore, if the sale consideration is utilized for the construction or purchase of a new residential house before due date of filing of return u/s 139(4) i.e. 31-3- 2010 in this case, the same will be eligible for exemption u/s 54. Thus the assessee’s claim for exemption is eligible u/s 54 of the Act. See CIT vs. Jagriti Agarwal (2011 (10) TMI 279 - PUNJAB AND HARYANA HIGH COURT) - Decided in favour of assessee. Mode of computation of capital gain - LTCG computed by AO on the basis of value adopted by the stamp valuation authority, in terms of Section 50C as against the Long term capital gain computed by the assessee, on the basis of actual sale consideration - Held that:- While computing exemption u/s 54, the actual sale consideration is to be taken into consideration and not the stamp duty valuation u/s 50C. Thus, assessee’s claim of exemption as made in the return of income as raised is allowed. See CIT vs. Smt. Nilofer Singh (2008 (8) TMI 165 - DELHI HIGH COURT ) and Gyan Chand Batra vs. ITO [2010 (8) TMI 528 - ITAT JAIPUR] - Decided in favour of assessee. Cost of construction of a room and boundary wall disallowed - Held that:- No infirmity in the orders of lower authorities as there is no mention of boundary wall in the sale deed. Besides, no evidence was furnished by the assessee before the AO to substantiate its claim of having constructed the boundary wall. - Decided against assessee.
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