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2019 (12) TMI 143

..... HAT:- As far as exemption claimed by the assessee u/s. 54 is concerned, the assessee has not satisfied the condition that the construction of new asset has to be complied within a period of 3 years from the date of transfer. This condition having not been satisfied in the case of assessee, the deduction u/s. 54 was rightly denied by the revenue authorities. Even today, there has been no construction on the site purchased by the assessee and therefore the action of the revenue authorities in denying the benefit of exemption u/s. 54 is upheld. Long term capital gain on sale of the flat has to be computed in accordance with the provisions of section 48. The facts which we notice in this regard from the statements filed by the assessee before t .....

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..... t. based on the cost which the builder had incurred in constructing flats allotted to the assessee or the value of the land conveyed to the developer as per the Sub-Registrar’s valuation, whichever is higher. The assessee will be entitled to benefit of indexation on such cost. The AO is directed to compute the capital gain as per directions given above. Appeal by the assessee is treated as partly allowed. - ITA No.985/Bang/2019 (Assessment year : 2012-13) - 13-11-2019 - SHRI N V VASUDEVAN, VICE PRESIDENT AND SHRI A K GARODIA, ACCOUNTANT MEMBER Appellant by: Shri V. Srinivasan, Advocate Respondent by: Shri Sunil Kumar Agarwal, Addl.CIT(DR)(ITAT), Bengaluru. ORDER Per N V Vasudevan, Vice President This appeal by the assessee is against .....

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..... anction for construction of residential house over the site from BBMP which he had purchased by utilizing the sale consideration on sale of the flat. The assessee submitted that for various reasons, construction of the residential house could not be proceeded with, but since the entire sale consideration was invested in the purchase of the site, assessee should be entitled to exemption u/s. 54 of the Act. This plea was rejected by the CIT(A) for the reason that the assessee did not satisfy the condition that construction should be completed within a period of three years from the date of sale of the flat and this condition was mandatory u/s. 54 of the Act to claim exemption. 5. The next submission made by the assessee before the CIT(A) was .....

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..... Cost of Acquisition Particulars Area Cost of Acquisition Index Indexed Cost Land 472 23,600 785/100 185,260 SBA 1,315 3,852,950 785/497 6,085,645 Total 6,270,905 4 Long Term Capital Gain NIL 7. The CIT(Appeals) noticed that as per the first computation of capital gain filed by the assessee which was supported by a report of registered valuer, the value of the built-up area was taken as ₹ 1200 per sft. He was of the view that ₹ 1200 per sft. was on the higher side. He directed the AO to consider the comparable sale deeds or comparable joint development agreements of the corresponding year and if that is not possible, adopted the guideline value as published by the State Govt. for arriving at the cost of construction in Bangalore .....

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..... roperty in purchase of a new residential site for construction of the new house within the time allowed u/s. 54 of the Act and for the failure of the appellant to construct the residential house within the time allowed u/s. 54 of the Act, the extent of capital gains cannot be charged to tax for the year under appeal in terms of the proviso to section 54[2] of the Act, and hence, the capital gains directed to be brought to tax ought to have taken at NIL. 5. Without prejudice to the right to seek waiver with the Hon'ble CCIT/DG, the appellant denies himself liable to be charged to interest a/s. 234-B and 234-C of the Act, which under the facts and in the circumstances of the appellant's case and the levy deserves to be cancelled. 6. F .....

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..... and 27.4.2004 respectively. The assessee got 13 flats and 4 car parks from the developer. The assessee retained 7708 sft. and undivided interest in land. 12. The assessee worked out the cost of land and the cost of super built-up area of Flat B 105 that was got under the joint development agreement and which was sold during the previous year in the following manner:- 1. Flats received by the appellant S.No. Flat No. SBA (in Sft) UDI 1. H-302 2,020 708 2. C-208 1,840 472 3. C-M08 1,290 472 4. A-M10 1,290 472 5. H-L02 1,290 472 6. D-M07 1,290 472 7. A-M13 1,290 472 8. D-002 1,265 472 9. B-105 1,315 472 10. C-M03 1,265 472 11. D-M02 1,265 472 12. D-007 1,275 472 13. A-304 2,545 708 14. Basement 250 - Total 18,975 6,608 2. Extent of land trans .....

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