TMI Blog2016 (5) TMI 874X X X X Extracts X X X X X X X X Extracts X X X X ..... idential house within the prescribed period under section 54 of the I.T. Act, the entire amount invested, should get benefit of deduction irrespective of the fact that the funds from other sources are utilised for new residential house Since the facts in the case of the assessee herein are similar to the facts in the case of Raj Babbar (2013 (1) TMI 237 - ITAT MUMBAI ), respectfully following the decision of the Coordinate Bench, we do not see any reason to interfere with the order of the CIT(A). - ITA.No.848/Hyd/2015, Cross Objection No.01/Hyd/2016 - - - Dated:- 13-5-2016 - SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER For The Revenue : Mr. B.R. Ramesh For The Assessee : Mr. K.C. Devdas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I.T. Act for investment of ₹ 1,37,15,550 made by him for construction of a residential house at Ramakrishnapuram, Saroornagar, Ranga Reddy District. The A.O. however, held that the sale consideration of ₹ 20 lakhs mentioned in the sale deed alone is eligible for exemption under section 54F and not deemed consideration arrived at by invoking the provisions of section 50C of the I.T. Act. He therefore, brought the sum of ₹ 69,60,000 to tax as capital gain. Aggrieved, assessee preferred an appeal before the CIT(A) who allowed the same and the Revenue is in appeal before us. 4. The Ld. D.R., while relying upon the order of the A.O, has placed reliance upon the following two decisions in support of his contention that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation on 'net consideration' decides if any chargeable capital gains u/s 45 exists or not subject to the conditions specified therein. As per the provisions of section 54F(1)(a) of the Act, no capital gains are chargeable u/s 45 of the Act, If the cost of the cost of the new asset is not less than the net consideration in respect of the original asset . The principle of proportionate exemption vide clause (b) above is put into service. Now, the question is what is the meaning of the expression 'net consideration'? The same is defined in the Explanation below the section 54F(1) and the same reads that For the purpose of this section (54F), net consideration', in relation to the transfer of a capital asset, means the fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 'net consideration' has two variants depending on FVC adopted and in this case, the NCs are quantitatively lesser than the cost of the new asset leaving no chargeable capital gains u/s 45 of the Act. Therefore, in our opinion, the assessee is not chargeable to any capital gains considering the given facts of the case and also the said clause (a) of section 54F(1). 12. We shall now take up the orders of the Tribunal cited by the parties. First, we shall take up the decision in the case of Gouli Mahadevappa (supra) dt 16.07.2010. Facts are that the assessee sold plot for ₹ 20 lakhs. The consideration as per the SRO is ₹ 36 lakhs. Assessee purchased new asset for ₹ 24 lakhs and invested entire sale proceeds. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d permit the assessee to peg down the market value at their whims and fancy to avoid tax, but when the capital gain is assessed on notional basis, whatever amount is invested in the new residential house within the prescribed period under section 54 of the I.T. Act, the entire amount invested, should get benefit of deduction irrespective of the fact that the funds from other sources are utilised for new residential house. The decision relied upon by the Ld. D.R. in the case of CIT, West Bengal and another vs. George Henderson Co., Ltd., (cited supra) and CIT vs. Smt. Nilofer L Singh are distinguishable on facts. Since the facts in the case of the assessee herein are similar to the facts in the case of Raj Babbar (cited supra), respectfull ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
