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TMI Blog2014 (8) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... es for stamp duty purposes. We find that the CIT(A) has decided this issue in favour of the assessee by following the Tribunal decision in the case of Gyanchand Batra vs. Income Tax Officer [2010 (8) TMI 528 - ITAT JAIPUR ] We also find that it is specifically mentioned in section 50C(1) of the Act that the stamp duty value is to be considered as full value of consideration received or accruing as a result of transfer for the purpose of section 48 of the Act. It is true that the assessee is a charitable trust and the income of the assessee has to be computed u/s 11 of the Act. As per sub section (1A) of section 11 of the Act, if the net consideration for transfer of capital asset of a charitable trust is utilized for acquiring new capital a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that in the present case, trust income is to be computed u/s 11 and not total income under various heads. He also submitted that there is no such accrual of income out of books. He placed reliance on the following judicial pronouncements: (i) Commissioner of Income-tax Vs Sahara India Savings and Investment Corporation [2003] 264 ITR 646 (ii) Commissioner of Income-tax Vs Sahara India Savings and Investment Corporation [2010] 321 ITR 371 6. We have considered the rival submissions. We find that this issue was decided by learned CIT(A) as per Para 4 to 4.5 of his order, which are reproduced below for the sake of ready reference: "4. Decision I have carefully considered the facts of the case and the arguments of the Ld. A.R. in this r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes to the specified hereunder, namely:- (i) where the whole of the net consideration is utilised in acquiring the new capital asset, the whole of such capital gain; (ii) xxxxxxxx xxxxxxxx Explanation - in this sub-section (i) xxxxxxx (ii) xxxxxxx (iii) "net consideration" means the full value of the consideration received or accruing as a result of the transfer of the capital asset as reduced by any expenditure incurred wholly and exclusively in connection with such transfer." 4.3 Since section 50C is a relatively new section in the Act, there is not much authority on the subject. However, the Hon'ble ITAT in the case of Gyanchand Batra Vs ITO 115 DTK 45 (JPTrib.) has analysed the impugned legal aspect as under:- &q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l value of, consideration as contained infection, 50C. The natural meaning of full value of consideration refers to consideration specified in the sale deed. Hence, for the meaning of full value of consideration as mentioned in different provisions of the Act except in section 48, one will have to consider the full value of consideration as specified in sale deed. ClT vs. Smt Nilofer I. Singh (2009) 221 CTR (Del) 277: (2008) 14 DTR (Del) 108: (2009) 309 ITR 233 (Del) relied on." 4.4 Respectfully following the aforesaid finding of the Hon'ble Tribunal, I hold that the "net consideration" in terms of section 11(1A) would mean the actual sale consideration of ₹ 2,25,000/-. 4.5 On perusal of the A.O., it is seen that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a charitable trust and the income of the assessee has to be computed u/s 11 of the Act. As per sub section (1A) of section 11 of the Act, if the net consideration for transfer of capital asset of a charitable trust is utilized for acquiring new capital asset, then the whole of the capital gain is exempt. Considering all these facts, we do not find any reason to interfere in the order of CIT(A) on this issue. 6.3 Regarding the reliance placed by Learned D.R. of the Revenue on the judgment of Hon'ble Kerala High Court rendered in the case of Lissie Medical Institutions Vs Commissioner of Income-tax (supra), we find that in that case, it was held by Hon'ble Kerala High Court that claim of depreciation is not allowable on the assets w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal is identical to the issue involved in assessment year 2007-08 of the Revenue's appeal and the same can be decided on similar line. In assessment year 2007-08, we have decided this issue in favour of the assessee. In the present year also, the entire sale consideration of ₹ 9 lac was invested in capital asset i.e. Fixed Deposit with the bank and the addition was made by invoking the provisions of section 50C of the Act. In line with our decision in assessment year 2007-08, in this year also, this issue is decided in favour of the assessee and against the Revenue. 10. In the result, the appeal of the Revenue stands dismissed. 11. In the combined result, both the appeals of the Revenue stand dismissed. (Order was pronounced in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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