TMI Blog2020 (4) TMI 817X X X X Extracts X X X X X X X X Extracts X X X X ..... ute the long-term capital gain keeping in view of our finding above. Deduction u/s 54 - admitting any claim of the assessee, otherwise then made in the return of income - HELD THAT:- As decided in in the case of CIT vs. R. L. Sood [ 1999 (9) TMI 27 - DELHI HIGH COURT] wherein it is held that when the assessee has made substantial payments of the property purchase, then the assessee become owner of the property and merely because registered sale deed is exhibited at a later stage, the assessee cannot be denied the benefit of section 54 We are of the opinion that claim of the assessee for deduction under section 54 is admissible if the assessee is found to satisfy all the conditions laid down under section 54 of the Act. Accordingly, we restore the issue in dispute to the file of the AO for considering the claim of the assessee for deduction under section 54 in accordance with the law. Appeal of the assessee is allowed for statistical purposes. - ITA No. 5904/DEL/2016 - - - Dated:- 24-2-2020 - Shri O. P. Kant, Accountant Member And Shri Kuldip Singh, Judicial Member For the Appellant : Shri P. C. Yadav, Advocate For the Respondent : Shri Satish Kr Gupta, Sr. D.R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal raising the grounds as reproduced above. 3. The Ground No. 1 of the appeal is general in nature. The Ground Nos. 2 to 5 of the appeal relates to addition of ₹ 86,50,710/- made by the Assessing Officer towards long-term capital gain on sale of the properties. The ground No. 6 relates to claim of deduction under section 54 of the Act by the assessee, which has not been admitted by the lower authorities. 4. We have heard rival submission of the parties on the issue in dispute and perused the relevant material on record. 5. In the case, the assessee has sold 4 properties (1/4th share in each property) in the previous year corresponding to the assessment year under consideration, however no income from capital gain was declared in the return of income. The Assessing Officer from database of the Income-tax department, noticed that assessee has entered into immovable asset transactions amounting to ₹ 6,04,51,100/-. On the basis of sale deeds filed by the assessee, the Learned Assessing Officer has summarised sale transactions in a table, which is extracted as under: S. No. Description of Properties Indexed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foora Bai Building Madina Manzil Khatija Bai Khatri Mansion Sale Consideration as per Circle Rate mentioned in the Sale Deed (share of Assessee ) ₹ 27,31,875/- ₹ 49,25,500/- ₹ 33,28,125/- ₹ 60,60,000/- Less : Indexed Cost of acquisition as shown in Revised Computation ₹ 8,68,995/- ₹ 36,40,045/- ₹ 10,62,890/- ₹ 28,22,860/- LTCG ₹ 18,62,880/- ₹ 12,85,455/- ₹ 22,65,235/- ₹ 32,37,140/- 7. The Ld. CIT(A) upheld the above addition in dispute. 8. Before us, the Learned Counsel of the assessee referred to Ground No. 5 of the appeal and submitted that under section 50C(2) of the Act, assessee has option to request for valuation of the property by the District Valuation Officer (DVO), in case the sale value declared by him is less than the sale value as the stamp valuation authority. According to him once the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r: Further, the request of the assessee vide last line of letter dated 11th March, 2014 w.r.t. transfer to District Valuation Officer is not maintainable since when a Government Authority, i.e., The Sub-Registrar of Mumbai, Maharashtra is declaring the value of a property then how a need arises to get it valued from the District Valuation Officer. 10. In view of the above, respectfully following the decision of the Coordinate bench, we are of the opinion that the Assessing Officer is barred from invoking provision of section 50C of the Act for computation of the long-term capital gain on the sale transactions carried out by the assessee. The Assessing Officer is required to compute the long-term capital gain on the sale consideration declared by the assessee in the sale deed in respect of the portion of the property sold by the assessee. Accordingly, we restore the issue of computation of the long-term capital gain on sale of the properties to the Learned Assessing Officer with the direction to compute the long-term capital gain keeping in view of our finding above. It is needless to mention that the assessee shall be afforded adequate opportunity of being heard. The Grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise then by filing a revised return. The Learned CIT(A) also held that the assessee has not fulfilled the condition of section 54 of the Act that the assessee has purchased another residential house within one year before or two years after the date on which transfer took place or constructed the same within three years after the date of such transfer. 14. Before us, the Learned Counsel of the assessee has submitted that the Ld. CIT(A) is not barred from admitting any claim of the assessee, otherwise then made in the return of income, if same is in accordance with law. The Counsel submitted that in the case of CIT Vs Rajesh Jalan 286 ITR 274 (Gau), the Hon ble Gauhati High Court has held that claim of deduction under section 54 can be made in the return filed under section 139(4) of the Act. The Learned Counsel further submitted that the assessee has made following payments to the developer: a. Payment of ₹ 1,00,00,000/- on 25th March 2010 (A.Y 2010-11) b. Payment of ₹ 1,21,38,750/- on 1st April 2010 (A.Y 2011-12) c. Payment of ₹ 16,74,375/- on 28.05.2010 (A.Y. 2011-12) d. All above payments were made via banking channel. Total of above payments ..... X X X X Extracts X X X X X X X X Extracts X X X X
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