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2017 (7) TMI 658 - AT - Income TaxClaim of deduction u/s 54/54F - amount deposited in specified capital gains account maintained with bank before the time stipulated u/s 139(1) - Held that:- The assessee has sold two flats for a total consideration of ₹ 42 lacs. Stamp duty authorities have valued the two flats at ₹ 50,40,611/- while the DVO has determined the value of the two flats at ₹ 59,64,000/-. The DVO valuation is higher than the value adopted by the stamp duty authorities. The stamp duty authorities have adopted the full value of the two flats at ₹ 50,40,611/- and in view of provisions of Section 50C(3) the value as adopted by stamp duty authorities shall have to be adopted to be full value of consideration of the property for computing capital gains under provisions of the Act, as the valuation adopted by DVO is higher than stamp duty authorities valuation. The assessee is entitled for the deduction u/s 54/54F in accordance with law for all the investment made in the new eligible before the date of filing of return of income as provided u/s 139 of the Act or wherein the amount is deposited in specified capital gains account maintained with bank before the time stipulated u/s 139(1) of the Act. The assessee has stated to have invested in the new residential property on 23 September, 2005 while the due date of filing return as extended by CBDT was 31.08.2005 but the said investment was made before the expiry of date of filing of return of income as stipulated u/s 139(4) of the Act and the assessee had diled return of income on 17-10-2005 wherein the investment was made prior to filing of return of income with the Revenue, and hence the assessee will be entitled for the deduction. CIT(A), on appeal allowed the deduction to the tune of ₹ 25 lacs while it is the claim of the assessee that the assessee has further spent an amount of ₹ 5,51,846/- towards stamp duty, registration charges and other miscellaneous expenses in the new house property. In our view, this claim of the assessee for being eligible for higher deduction u/s 54/54F of the Act on the grounds that the said sum was spent before the filing of return of income on 17.10.2005 within time stipulated u/s 139(4) of the Act required verification by the AO and hence we are inclined to set aside and restore this issue to the file of the A.O. with direction to verify the claim of the assessee of having spent the amount of ₹ 5,51,846/- towards stamp duty, registration and other miscellaneous expenses with respect to the acquisition of eligible new asset, prior to the filing of return of income on 17.10.2005.
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