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2016 (8) TMI 1092 - AT - Income TaxExemption u/sec. 54F - net consideration computation to be invested or value fixed u/s 50C as stamp valuation - Held that:- The assessee has invested entire net sale consideration in the construction of house property alongwith two others at Bangalore which is not disputed and complied the stipulated conditions of provisions of Sec. 54F of the Act that within three years from the date of transfer of original Asset i.e. 3rd December, 2007 and assessee should construct and take possession of the residential property on or before 3rd December, 2010. But the assessee has entered into agreement of construction on 06.11.2009 for construction of house property at Bangalore alongwith two others and sale deed was registered on 29.03.2010 much before the stipulated date. Therefore, there is no dispute on violation of stipulated conditions of Sec. 54F of the Act. Further, on the aspect of applicability of provisions Sec. 50C of the Act, the ld. Authorised Representative submitted that the guideline is to be considered for the purpose of stamp duty valuation and not for assessment. Further, the vacant land sold at Trichy is on canal and low lying areas formed into drainage pit which shall not fetch the such market value. The Section 50C of the Act provisions are deeming fictions and the assessee has not received sale consideration other than the amount specified in the sale deed. Under provisions of Sec. 54F of the Act, net consideration has to be invested in the Residential property but not the deeming value being fiction.
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