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2019 (2) TMI 48 - AT - Income TaxEntitlement to deduction claimed u/s. 54/54F - claim of assessee to calculate the long-term capital gains after taking into account the sale consideration as admitted by the assessee OR considering the sale consideration of the property transferred, as valued by the AVO - Held that:- It is born out on record that in the said computation, the assessee itself has computed the long-term capital gains at ₹ 29,50,677/- and after deducting ₹ 29,04,841/- u/s. 54, has admitted the taxable long-term capital gains at ₹ 45,836/- as noted above. There remains nothing to say on behalf of the assessee to considering the sale consideration of property at ₹ 16,00,000/- for further computing the capital gain of the said property, particularly when the request of assessee for referring the valuation to Valuation cell has been accepted by the CIT(A) and the valuation of AVO at ₹ 34 lakhs has been accepted by him and the AO has been directed accordingly. No justification in the claim of assessee to consider the sale value of impugned property at ₹ 16 lakhs in the peculiar facts and circumstances of the present case. As far as the claim of deduction u/s. 54 it is not in dispute that the assessee has invested in purchase of residential property at B-40, Malcha Marg, for ₹ 29,04,841/-. AO while rejecting the claim of assessee u/s. 54 of the Act has opined that the said deduction is not available to the assessee u/s. 54 as he had sold a plot of land and not any residential house. The assessee has submitted that the claim made by assessee is legitimate and is available to it u/s. 54/54F. Once the assessee has admitted the capital gains on the sale of capital asset and has admittedly invested substantial amount of capital gains in purchase of residential property within the stipulated time, the assessee would be entitled to claim deduction u/s. 54 or 54F, as the case may be, and the Assessing Officer was bound to give credit of such claim legitimately, meaning thereby, if the assessee was found not satisfying the conditions of section 54 AO was required to consider its claim in the light of section 54F. Remit this issue back to the file of Assessing Officer for considering the claim of assessee on the anvil of section 54F and to decide the issue afresh after being satisfied with the conditions of section 54F, if satisfied by assessee. Needless to say, the assessee shall be given reasonable opportunity of being heard. - Appeal deserves to be partly allowed for statistical purposes.
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