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2021 (8) TMI 1201 - AT - Income TaxLong tern capital gain - Valuation of property - determination of fair market value of the property - adoption of the deemed sales consideration according to the provisions of Section 50 C - HELD THAT:- As the difference between stamp duty valuation u/s 50C is just 8.98 % higher than the actual sale consideration. Only actual sale consideration should be taken for working out capital gain. Accordingly, additional ground raised by the assessee is allowed. Deduction u/s 54 - whether it is to be restricted to only one residential unit against the total investment made by the assessee in two adjoining residential unit - HELD THAT:- Assessee has purchased two adjacent units of house property and claimed deduction u/s 54 of the Act. For the impugned assessment year section 54 provided exemption in investment in “a‟ residential house and which is amended by Finance Act, 2014 wherein, word “a‟ has been replaced by word “one ‟. This amendment is prospective in nature cannot be given a retrospective effect. In view of this, in the facts and circumstances of the case whether the assessee has purchased two adjacent residential houses, according to us the assessee is entitled to deduction u/s 54 of the Act on the amount invested in both the houses. Addition u/s 69 - Unexplained investment in purchases of property - HELD THAT:- Source of the fund is available with the assessee for payment to the builder and further the medical exigencies are meet by the Govt is not denied, We found that in absence of any other evidences contrary , benefit of cash available on hand should be granted four source of investment of ₹ 1 lakh with the builder. Accordingly, we direct the ld AO to delete the addition - Decided in favour of assessee. Adopting indexed cost of acquisition shown by the assessee - HELD THAT:- AO has considered the indexed cost of acquisition without giving any reason that why he is not agreeing with the indexed cost of acquisition shown by the assessee of ₹ 6,991,206 as shown in the computation of income. Therefore we agree with the argument of the learned authorised representative. We direct the ld AO to consider the cost of acquisition of the property sold/transferred for computation of capital gain. Thus, Ground is allowed.
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