INCOME TAX ACT, 1961

Section 54F

Capital gains - Deduction under section 54F - Taxability of capital gains on sale of capital asset -

Assessee had sold a property as per value of stamp valuation authorities and the entire consideration was invested for acquiring the new residential house, and entitled for deduction under section 54F. AO rejected the explanation of assessee adopting the market value as assessed by Stamps and Registration Authorities as per section 50C and disallowed the exemption claimed by assessee. Held: Net consideration was full value of consideration received or accrued as a result of transfer but not deemed consideration as defined in section 50C. Section 54F(1)(a) clearly makes assessee entitled for net consideration, if the whole of such amount is paid for acquiring the new house. There was no dispute that assessee had paid the whole of net consideration for acquiring the new house. In case of DCIT, v. Dr. Chalasani Mallikarjuna Rao [2016 TaxPub(DT) 4675 (Visakhapatnam-Trib)], it was held that section 50C had no application where the entire net sale consideration was applied for acquiring the new house.

Relied:CIT v. Smt. Nilofer I. Singh (2008) 14 DTR (Del) 108 : (2009) 309 ITR 233 (Del) : 2009 TaxPub(DT) 0785 (Del-HC) ITO v. Shri Raj Kumar Parashar [I.T.A. No. 11/JP/2016, dt. 28-9-2017] : 2017 TaxPub(DT) 4382 (Jp-Trib) DCIT v. Dr. Chalasani Mallikarjuna Rao [I.T.A. No. 206/Viz/2013, dt. 21-10-2016] : 2016 TaxPub(DT) 4675 (Visakhapatnam-Trib) Gyan Chand Batra v. ITO (2010) 6 ITR(T) 147 (Jp) : 2010 TaxPub(DT) 2185 (Jp-Trib)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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