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2020 (4) TMI 817 - AT - Income TaxLong-term capital gain on sale of the property - Addition invoking of the provisions of section 50C - mandation of referring the property for valuation to the DVO - value adopted by the stamp valuation authority as deemed sale consideration received/accrued as a result of the transfer - HELD THAT:- We find that in the instant case, the Assessing Officer in the assessment order has specifically mentioned that such a request for making reference to the DVO was not maintainable. As relying on M/S. ADITYA NARAIN VERMA [HUF] [2017 (6) TMI 542 - ITAT DELHI] AO is barred from invoking provision of section 50C of the Act for computation of the long-term capital gain on the sale transactions carried out by the assessee. AO is required to compute the long-term capital gain on the sale consideration declared by the assessee in the sale deed in respect of the portion of the property sold by the assessee. Accordingly, we restore the issue of computation of the long-term capital gain on sale of the properties to the Learned Assessing Officer with the direction to compute the long-term capital gain keeping in view of our finding above. Deduction u/s 54 - admitting any claim of the assessee, otherwise then made in the return of income - HELD THAT:- As decided in in the case of CIT vs. R. L. Sood [1999 (9) TMI 27 - DELHI HIGH COURT]wherein it is held that when the assessee has made substantial payments of the property purchase, then the assessee become owner of the property and merely because registered sale deed is exhibited at a later stage, the assessee cannot be denied the benefit of section 54 We are of the opinion that claim of the assessee for deduction under section 54 is admissible if the assessee is found to satisfy all the conditions laid down under section 54 of the Act. Accordingly, we restore the issue in dispute to the file of the AO for considering the claim of the assessee for deduction under section 54 in accordance with the law. Appeal of the assessee is allowed for statistical purposes.
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