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TMI Blog2016 (8) TMI 1092X X X X Extracts X X X X X X X X Extracts X X X X ..... r construction of house property at Bangalore alongwith two others and sale deed was registered on 29.03.2010 much before the stipulated date. Therefore, there is no dispute on violation of stipulated conditions of Sec. 54F of the Act. Further, on the aspect of applicability of provisions Sec. 50C of the Act, the ld. Authorised Representative submitted that the guideline is to be considered for the purpose of stamp duty valuation and not for assessment. Further, the vacant land sold at Trichy is on canal and low lying areas formed into drainage pit which shall not fetch the such market value. The Section 50C of the Act provisions are deeming fictions and the assessee has not received sale consideration other than the amount specified in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The learned Commissioner of Income Tax (Appeals) ought to have appreciated that where the full value of the consideration received as per sale agreement has been invested in the new house property, exemption u/s 54F is to be given for the full LTCG, as Section 54F is an exemption provision and a complete code in itself and and deeming fiction contained in any other provision cannot be brought into section 54F, as held out in various Judicial Pronouncements. 5. Without prejudice to above claim of full exemption of LTCG, it is submitted that the Learned Commissioner of Income Tax (Appeals) erred in not considering the plea of the Appellant to consider the full value of the investment of ₹ 17,31,975/- in the new house property w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... share in the investment being A17,31,975/- and claimed the exemption u/sec. 54F of the Act. Bu the ld. Assessing Officer has not allowed exemption as the new residential asset was purchased on 29.03.2010 after a period of two years and three months and Assessed total income including long term capital gains A8,44,394/- and raised demand. Aggrieved by the order, the assessee filed an appeal before Commissioner of Income Tax (Appeals). 4. In the appellate proceedings, the ld. Authorised Representative of assessee argued the grounds and explained the facts that the ld. Assessing Officer has erred in adopting the value of DVO, as vacant land sold at Trichy is situated on the banks of Uyyakondan Canal, a low lying areas as per registered dee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orised Representative that the vacant land sold at Trichy is on the banks of Canal which being low lying area for a consideration of A15,67,125/- by registered deed on 03.12.2007 and the assessee has deposited the sale consideration with State Bank of Travancore in accordance with the provisions of Sec. 54F(4) of the Act till the construction of the house. The ld. Assessing Officer in the assessment proceedings As per provisions of Sec. 50C adopted the guideline of the property at A33,22,305/- and at the request of the assessee, the ld. Assessing Officer referred to valuation officer and fixed the DVO value at A24,45,000/- which was not accepted and assessee was prevented from filing objections on valuation report and the ld. Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the residential property on or before 3rd December, 2010. But the assessee has entered into agreement of construction on 06.11.2009 for construction of house property at Bangalore alongwith two others and sale deed was registered on 29.03.2010 much before the stipulated date. Therefore, there is no dispute on violation of stipulated conditions of Sec. 54F of the Act. Further, on the aspect of applicability of provisions Sec. 50C of the Act, the ld. Authorised Representative submitted that the guideline is to be considered for the purpose of stamp duty valuation and not for assessment. Further, the vacant land sold at Trichy is on canal and low lying areas formed into drainage pit which shall not fetch the such market value. The Section 50 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d rather than the value determined by the Sub-Registrar on the basis of guideline value. Actual sale consideration as reflected in the sale deed has to be adopted in the absence of any other material to indicate that the assessee has received any on-money over and above the amount disclosed in the sale deed. In this case, it is nobody s case that the assessee received on-money over and above the sale consideration disclosed in the sale deed. Therefore, this Tribunal is of the considered opinion that the Assessing Officer has to adopt the actual sale consideration of _ 90 lakhs for the purpose of considering the claim of exemption under Section 54F of the Act . Respectfully following the Co-ordinate Bench decision, we allow the appeal of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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