TMI Blog2010 (4) TMI 1128X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The assessee/respondent is a chartered accountant by profession. He is also practising as a surveyor and loss assessor since 1982 and he is also director in M/s Srivatsan Surveyors (P) Ltd. The asst. yr. is 2000-01 and the corresponding accounting year ended on 31st March, 2000. During the year the assessee/respondent sold his insurance survey loss (sic) business to the said company for a price of ₹ 56 lakhs. The respondent also filed a return of income on 31st Oct., 2000 admitting the income of ₹ 47,39,790. The said return was processed under s. 143(1) of the Act. Later, the assessee/respondent filed revised return on 26th March, 2002 admitting long-term capital gain of ₹ 56 lakhs and also claimed exemption under s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es place and therefore, allowed the appeal and set aside the order of the AO. Aggrieved by that order the Revenue has filed the appeal before the Tribunal. The Tribunal remanded the matter in respect of the valuation of the goodwill and in respect of the claim of exemption under s. 54F of the Act; the Tribunal allowed the claim and dismissed the appeal filed by the Revenue. Aggrieved by that order, the Revenue has filed the present appeal. 2. The learned counsel appearing for the Revenue submitted that the Tribunal is wrong in allowing deduction under s. 54F of the IT Act. It was contended that the assessee has not purchased the property out of the sale consideration of the transferred assets and therefore, the AO is right in disallowing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under s. 45 (b) if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the net consideration, shall not be charged under s. 45: Provided that nothing contained in this sub-section shall apply where- the assessee,- (i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or (ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... net consideration in respect of the capital asset transferred, the entire capital gain arising from the transfer will be exempt from tax. (ii) If the cost of the newly acquired house is less than the net consideration in respect of the capital asset transferred, the exemption from long-term capital gain will be granted proportionately on the basis of investment of net consideration either for purchase or construction of the residential house. This concession will not be available in a case where the asseesee owns on the date of the transfer of the original asset any residential house, or purchases within the period of one year after such date or constructs, within the period of three years after such date, any other residential house. Where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee had satisfied all the conditions. The AO tends to assume that in order to get deduction under s. 54F of the Act, the assessee has to invest in new asset within a period of one year out of sale consideration and held in para 9 of the order, which reads at follows : Assessee has claimed deduction under s. 54F on the ground that he purchased a property for a sum of ₹ 56,23,740, the registration of which was made on 18th Aug., 2000. It is seen that the assessee has not received any amount as consideration from M/s Srivatsan Surveyors (P) Ltd., till the date of registration of the property. In view of the fact that the property has been purchased by the assessee not out of consideration received on account of transfer o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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