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2017 (3) TMI 25 - AT - Income TaxComputation of capital gain - adoption of value of the land - Held that:- In this case as on 10.02.2007, the guideline value of the property was not more than ₹ 80,15,000/-, the price agreed between the parties. On 01.08.2007 the guideline value was revised to ₹ 1,20,00,000/-. Since the assessee agreed to sell the property for ₹ 80,15,000/- on 10.02.2007 which is much more than the guideline value which existed on 10.02.2007, this Tribunal is of considered opinion that the Assessing Officer has to accept the sale consideration of ₹ 80,15,000/- under Section 50C of the Act. In other words, the guideline value which exists on the date of agreement for sale, has to be taken in to consideration for the purpose of determining the fair market value under Section 50C of the Act. Therefore this Tribunal is unable to uphold the orders of the lower authorities. Accordingly, the orders of the lower authorities are set aside and the Assessing Officer is directed to accept the sale consideration at ₹ 80,15,000/- as agreed between the parties in the agreement for sale dated 10.02.2007. Claim of exemption under Section 54F - Held that:- The Parliament in their wisdom thought it fit to grant exemption in respect of the capital gain which was used for construction or purchase of property till the due date for filing of return of income under Section 139 (1) of the Act. The assessee could not use the sale consideration within the due date under Section 139 (1) of the Act, the same shall be deposited in any one of the capital gain account. The Apex court while considering the “due date” held that the due date means, the date prescribed under Section 139 (1) of the Act. The Apex Court in the case of Prakash Nath Khanna and Another v CIT (2004 (2) TMI 3 - SUPREME Court) has examined these issue and found that the due date means the date under Section 139 (1) of the Act and not the date under Section 139 (4) of the Act. This Tribunal is of considered opinion that the Assessing Officer has rightly allowed the claim of the assessee with regard to the capital gain utilized for purchasing the flat till the due date for filing the return of income under Section 139 (1) of the Act. Therefore this Tribunal did not find any reason to interfere with the orders of the lower authorities. Accordingly, the same is confirmed.
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