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Shri. R. Srinivasan (HUF) Versus The Income Tax Officer, Ward I (1) , Trichy

2016 (8) TMI 1092 - ITAT CHENNAI

Exemption 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 r .....

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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 prope .....

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essment year 2008-2009 passed u/s.143(3) and 250 of the Income Tax Act, 1961 (herein after referred to as the Act ). 2. The assessee has raised the following grounds of appeal:- 2. The Learned Commissioner of Income Tax (Appeals) erred in holding that once the Assessing Officer adopted the same value as that of DVO for working out capital gains tax, no further objections can be entertained on this issue, ignoring the Judicial pronouncements under similar / identical circumstances, which are in f .....

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ed in the new house property, exemption u/s 54F is to be given for the full LTCG, as Section 54F is an exemption provision and a complete code in itself and and deeming fiction contained in any other provision cannot be brought into section 54F, as held out in various Judicial Pronouncements. 5. Without prejudice to above claim of full exemption of LTCG, it is submitted that the Learned Commissioner of Income Tax (Appeals) erred in not considering the plea of the Appellant to consider the full v .....

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, the case was taken up for scrutiny under CASS and notice u/s.143(2) of the Act was issued. In compliance to notices, the ld. Authorised Representative of assessee appeared from time to time and produced Books of Account as called for. In the assessment proceedings, the ld. Assessing Officer found that the assessee has sold land on 03.12.2007 at Abishekapuram Village, Trichy and received sale consideration A15,67,125/- as against market value/guideline value of stamp duty A33,22,305/-. The ld. .....

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n 29.03.2010 for a consideration of A51,95,926/- and the assessee s share in the investment being A17,31,975/- and claimed the exemption u/sec. 54F of the Act. Bu the ld. Assessing Officer has not allowed exemption as the new residential asset was purchased on 29.03.2010 after a period of two years and three months and Assessed total income including long term capital gains A8,44,394/- and raised demand. Aggrieved by the order, the assessee filed an appeal before Commissioner of Income Tax (Appe .....

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dd shape of the plot which requires Heavy filing of mud for usage. The adoption of market value determined for stamp duty cannot be applied considering the facts and location of the land. Further, the ld. Assessing Officer has restricted the claim in the construction of the house property to the extent of A15,37,000/- as against A17,31,975/- towards assessee share. The assessee has entered into agreement with Builder on 06.11.2009 and the possession was taken on 29.03.2010 on registering deed wi .....

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ng Officer. Aggrieved by the Commissioner of Income Tax (Appeals) order, the assessee assailed an appeal before Tribunal. 5. Before us, the ld. Authorised Representative of assessee argued the grounds and reiterated the submissions made in the assessment and appellate proceedings and contention of the ld. Authorised Representative that the vacant land sold at Trichy is on the banks of Canal which being low lying area for a consideration of A15,67,125/- by registered deed on 03.12.2007 and the as .....

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ing objections on valuation report and the ld. Assessing Officer while computing Long Term Capital Gains has restricted claim of investment in House property to the extent of A15,35,000/-instead of 1/3rd share being A17,31,975/- The assessee has deposited the sale consideration of plot in Capital Gains Account Scheme and assessee was not provided with adequate opportunity to rebut the DVO valuation. Further, the ld. Authorised Representative submitted that the assessee has invested sale consider .....

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he grounds. 7. We heard the rival submissions, perused the material on record and judicial decision. The only crux of the disputed issue argued by the ld. Authorised Representative 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, 2 .....

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, 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 co .....

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