TMI Blog2015 (6) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 - PUNJAB AND HARYANA HIGH COURT) - Decided in favour of assessee. Mode of computation of capital gain - LTCG computed by AO on the basis of value adopted by the stamp valuation authority, in terms of Section 50C as against the Long term capital gain computed by the assessee, on the basis of actual sale consideration - Held that:- While computing exemption u/s 54, the actual sale consideration is to be taken into consideration and not the stamp duty valuation u/s 50C. Thus, assessee’s claim of exemption as made in the return of income as raised is allowed. See CIT vs. Smt. Nilofer Singh (2008 (8) TMI 165 - DELHI HIGH COURT ) and Gyan Chand Batra vs. ITO [2010 (8) TMI 528 - ITAT JAIPUR] - Decided in favour of assessee. Cost of constru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he capital gain is to be determined by taking the actual sale consideration and not the deemed full value of consideration adopted u/s 50C of the I.T. Act, 1961. 3. The ld. CIT(A) has erred in confirming the cost of construction of ₹ 20,000/- taken by the ld. AO as against ₹ 30,000/- taken by the assessee, resulting in a reduction of ₹ 55,100/- in the indexed cost thereof. 2.1 At the outset, the ld. Counsel for the assessee did not press Ground No. 2 (a) which is accordingly dismissed as withdrawn. 3.1 Brief facts of the case are that deceased assessee owned a house situate at Plot No. 360C, Talwandi, Kota which was purchased by him in the year 1971. During the impugned year it was sold for a consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... belated return u/s 139(4) of the Act. Therefore, the purchase of new house or deposit in the capital gain account scheme can be made on or before due date of Section 139(4) to be eligible for exemption u/s 54 of the Act. In assessee s case new residential house is purchased in the month of March 2009 whereas the time limit u/s 139(4) expires on 31-3-2010, thus the purchase of new eligible asset i.e. residential house is before the due date prescribed u/s 139(4); therefore, assessee is eligible for exemption u/s 54. Reliance is placed on following cases laws. (i) CIT vs. Jagriti Agarwal (2011) 339 ITR 610 (P H) (ii) CIT vs. Rajesh Kumar Jain (2006) 286 ITR 274 (Gau.) (iii) Fathima Bai vs. ITO, 32 DTR 243 (Karn.) (iv) CIT vs. Vrinder P. Issa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eaning. The wording being unambiguous Section 48 referring only to the sale consideration actually received, Section 50C being deeming fiction it cannot be applied to sec. 48 in the absence of any enabling provision. It is a trite law that a deeming fiction should be given limited meaning restricted to provision for which the fiction is enacted. Therefore, the deeming provisions of Section 50C cannot travel beyond limited applicability as prescribed therein. This aspect came under the judicial scrutiny and Hon'ble Delhi High Court in the case of Smt. Nilofer I Singh (2009) 309 ITR 233, 238 has held as under:- These decisions makes it more than clear that the expression full value of consideration that is used in Section 48 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. 3.7 We have heard the rival contentions and perused the materials available on record. Apropos Ground No. 1 i.e. deposit of net consideration into capital gain account scheme on 31-032009, we find merit in the arguments of the ld. AR that Section 54 refers to Section 139 for the time limit to acquire eligible new asset, which includes return u/s 139(4) also i.e. time limit of one year from the end of assessment year. Various judicial precedents cited above have taken this view; respectfully following them we hold that assessee purchase of new residential house is eligible for claim of exemption u/s 54. Thus Ground No. 1 of the assessee is allowed. 3.8 Apropos Ground No. 2 (b), Hon'ble Delhi High Court in the case of CIT vs. Sm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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