TMI Blog2020 (8) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... ns, and the effect has to be given first to the provision of capital gains as given under the above scheme and then apply the provisions of Section 70. Section 70 would come into play only when the capital gains have been computed in accordance with the provisions contained in Sections 45 to 55A. Thus, if, after work out of deduction u/s 54F if the capital gain arose on sale of certain assets is not chargeable to capital gain than the loss arose to assessee on sales of another assets cannot set off from gain of such assets. It is not necessary that one should first apply Section 70(3) and thereafter only, the assessee could invest the capital gain arising from the long term capital asset. We set aside the orders of lower authorities and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of property was ₹ 24,165/- and thus the long term capital gain from sale of property was ₹ 1,03,01,192/-. The amount of sale consideration so received was transferred to capital gain account and such amount was used for purchases of flat. The assessee claimed deduction of ₹ 1,03,01,192/- u/s 54F of I.T. Act. During the year, the assessee has suffered long term capital loss of ₹ 14,76,730/- on sale of shares which the assessee claimed carried forward as long term capital loss for the current year A.Y 2015-16. The AO firstly set off the long term capital loss suffered from shares from the long term capital gain from sale of commercial property and after intra-head adjustment the AO computed net long term capital gai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al or a Hindu undivided family], the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or [two years] after the date on which the transfer took place purchased, or has within a period of three years after that date [ constructed, a residential house ] (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,- (a) if the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital asset not being a short term capital asset.' Thus as per provisions of section 54F (1) on fulfilment of certain conditions the capital gain arose on sales of such assets will not be chargeable to capital gain under the section 45 of the Act. The scheme of Sections 45 to 55A provide for the computation of capital gains, and the effect has to be given first to the provision of capital gains as given under the above scheme and then apply the provisions of Section 70. Section 70 would come into play only when the capital gains have been computed in accordance with the provisions contained in Sections 45 to 55A. Thus, if, after work out of deduction u/s 54F if the capital gain arose on sale of certain assets is not chargeable to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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