Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (3) TMI 962 - AT - Income TaxLTCG computation - Exemption u/s. 54 - AO has rejected the revised statement of total income filed by the assessee to compute long term capital gains from transfer of property on the basis of consideration received as per sale agreement, only on the ground that the claim of the assessee cannot be entertained unless a claim is made by filing revised return - HELD THAT:- We are of the considered view that when the assessee has filed a revised statement of total income considering full value of consideration as per sale agreement, the Ld. CIT(A) ought to have entertained the fresh claim of the assessee towards computation of long term capital gains and exemption claimed u/s. 54 of the Act. Hence, we direct the AO to consider the revised statement of total income filed by the assessee, enhancing the computation of long term capital gains from sale of property on the basis of sale consideration received as per sale agreement. Exemption u/s. 54 - We are of the considered view that once, the source of money is not disputed and which has come from sale of property, then any surplus money including additional consideration would also partake character of income generated from that source. This principle is supported by the decision of ITO v. Abraham Varghese Charuvil [2017 (4) TMI 1148 - ITAT COCHIN]. In this case, the source of additional money is not disputed by the AO, because the AO has made additions towards difference in sale consideration on the basis of Sale Deed and sale agreement - once the source of income is not disputed, then the AO ought to have considered the additional income, if any, from that source as a part of income generated from the source itself - direct the AO to consider the revised long term capital gains computed by the assessee on the basis of sale consideration as per sale agreement and allow the benefit of exemption u/s. 54 of the Act as per revised computation, because, the investment made by the assessee for purchase of house property at Bangalore, is more than the amount of long term capital gains derived from sale of house property. Appeal of assessee allowed.
|