TMI Blog2020 (3) TMI 876X X X X Extracts X X X X X X X X Extracts X X X X ..... ses of section 48, the fair market value of the asset on the date of such conversion or treatment shall be deemed to be the full value of the consideration received or accruing as a result of the transfer of the capital asset. In view of above CBDT circular and order of Special Bench of Kolkata Bench of the Tribunal in the case of Octavius Steel Co. Ltd [ 2002 (5) TMI 204 - ITAT CALCUTTA] have no hesitation to hold that the Assessing Officer was also not correct in denying benefit of section 54F of the Act to the assessee on the ground that residential flat was not constructed after the date of transfer but alongwith saleable flats. Addition u/s 43CA - Amount pertaining to a residential unit offered as a settlement to one Md. Ekram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antive grievance raised in the instant appeal seeks to revise both the lower authorities action declining sec.54F deduction claim of ₹ 60,94,982/- in assessment as upheld in the lower appellate proceedings. The assessee had converted the alleged capital asset as stock-in-trade in the year 2012. i.e.09.01.2012 as per Assessing Officer and 29.11.2012 as per the taxpayer she sold the same on 21.05.2014 relevant to the impugned assessment year 2015-16. The assessee would then re-invest the corresponding capital gains is a yet another independent property. The Revenue s stand as per the foregoing synopsis is that the date of transfer of the capital asset(s) have to be taken as on their conversion of stock-in-trade way back in the year of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 45(2) of the Act, which provided that for taxation where the converted -in-trade is sold and difference between the market value on the date of conversion and actual cost is the capital gain, then the difference on transfer or sale of capital asset shall be the date of transfer of stock-in-trade and not the date on which capital asset was converted into stock-in-trade and not the date on which capital asset was converted into stock-in-trade. 18. Replying to above, ld D.R. supported the assessment order and submitted that residential flat on which exemption u/s.54F has been claimed by the assessee was not constructed after the date of transfer but constructed alongwith saleable flats. Therefore, the exemption was righty disa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into stock-in-trade, there is no profit as no can make profit out of himself. Further, as per amended sub-section(2) of section 45 of the Act, which was inserted by the Taxation Legislation (Amendment Act), 1984 w.e.f. 1.4.1985, notwithstanding anything contained in sub-section (1), the profits or gains arising from the transfer by way of conversion by the owner of a capital asset into, or its treatment by him as stock-in-trade of a business carried on by him shall be chargeable to income tax as his income of the previous year in which such stock in trade is sold or otherwise transferred by him and, for the purposes of section 48, the fair market value of the asset on the date of such conversion or treatment shall be deemed to be the full v ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
