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2018 (3) TMI 1878 - AT - Income TaxExemption u/s 54 - purchase of a residential house within one year before or two years after from the date of transfer or construction of a residential house within three years from the date of transfer - HELD THAT:- It is clear that on the date when assessee entered into the agreement, the construction had only commenced. The agreement was for construction of the flat and giving it to the assessee in a built up condition. It was not the purchase of an already built residential house. Once the payments were for construction, only the amounts paid by the assessee within a period of three years from the date of transfer of asset, giving rise to the capital gains could be considered for deduction u/s.54 of the Act. The date of transfer of the asset giving rise to the capital gains was 15th November, 2012 and the payments made by the assessee to M/s. Aarthik Properties Limited after the said date was ₹ 5,00,000/- only. We are therefore of the opinion that lower authorities were justified in restricting the claim u/s.54 of the Act to the amounts paid by the assessee after 15.11.2012. Computation of capital gains - application of Section 50C - disallowance of claim for improvement - HELD THAT:- Assessing Officer is left with no choice but to consider the full value of consideration at the amount fixed by the DVO, if it is lower than what has been fixed for stamp duty. We cannot find any infirmity in the order of the ld. Commissioner of Income Tax (Appeals) on this issue also. As for the claim for improvement expenses assessee himself had withdrawn the ground assailing disallowance of improvement expenses. We thus do not find any reason to interfere with the order of the ld. Commissioner of Income Tax (Appeals). Appeal of the assessee stands dismissed.
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