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2016 (10) TMI 1203 - ITAT CHENNAILong term capital gains assessed as per sec. 50C - assessee has sold the property for a consideration and invested in NABARD bonds for claiming exemption of capital gains - Held that:- In the assessee’s case, the assessee disputed the guideline value during the pendency of assessment proceedings and filed the appeal before the SRO Therefore, in all fairness, we consider it necessary to refer the valuation to the Departmental valuation cell for determining the fair market value. Accordingly, we remit the matter back to the file of Assessing Officer to readjudicate the issue after the receipt of the valuation report from DVO on merits. The issue regarding long term capital gains is allowed for statistical purposes. Sale consideration of the property was invested in a specified bond to claim exemption u/s 54EC therefore, there is no capital gains - assessee has sold the property and received the sale consideration of ₹ 19,01,000/- and the entire sale consideration was invested in NABARD bonds u/s 54EC of the Act - Held that:- We heard the rival submissions and perused the material placed before us. We have carefully gone through the provisions of sec. 54EC of the Act. As per sec. 54EC of the Act, if the cost of long term specified asset is not less than the capital gain arising from the transfer of the original asset, the whole of such capital gain shall not be charged to the capital gains tax. In this case, though te assessee has invested the entire sale consideration, capital gains has to be worked out by taking the guideline value u/s 50C of the Act. - Appeal of the assessee is partly allowed for statistical purposes.
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