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2018 (12) TMI 1080 - HC - Income TaxComputation of capital gains - assessee had ownership of half of the 38% sold to the builder - valuation of the property - entitled to exemption under section 54 & 54F - Held that:- The agreement specifically shows that the consideration to the assessee is 31% of the built up area. What benefit accrues to the assessee is of no consequence. The builder only promised construction of a super built up area in a multi-storeyed complex and handing over of 31% of the area. The consideration which passed from the builder to the assessee is only the cost of construction. This was the specific agreement between the parties. We do not think that an artificial exercise can be carried out, by which the market value of the constructed area can be determined and the same computed as the sale consideration which is not the specific terms of the agreement between the builder and the land owner. We need not look at whether the assessee kept the area assigned to him, for himself or sold it; which is irrelevant to determine the construction cost. In the context of the said question having been answered in favour of the assessee and the net result of the returns being a capital loss, the issue of exemption under Section 54 or Section 54F does not at all arise - decided against revenue
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