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TMI Blog2016 (10) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... view of the Ld CIT(A) that the possession should have been taken within three years. Since the assessees have been considered to have paid entire cost of new flats, they should be allowed deduction u/s 54 of the Act in respect of cost of new flats. See Commissioner Of Income-Tax Versus Mrs. Hilla JB. Wadia [1993 (3) TMI 7 - BOMBAY High Court] and circular No.471 dated 15.10.1986 and Part 2 of Circular No.672 dated 16.3.1993 - Decided in favour of the assessee. - I.T.A. No. 3846/Mum/2015, I.T.A. No. 7179/Mum/2014 - - - Dated:- 2-9-2016 - Shri B.R. Baskaran (AM) For The Assessee : Shri Sanjay Parikh For The Department : Shri A. Ramachandran ORDER Both the appeals filed by the respective assessees are directed against t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, since it was obtained free. 5. In the case of Shri Pratap S. Panveli, a different type of computation was made by the Assessing Officer, i.e., he also adopted the stamp duty valuation of Rs. 93,52,000/- u/s 50C of the Act and the share of the assessee on it was taken at Rs. 23,38,000/-. The Assessing Officer considered the value of flat allotted to the assessee, which was worked out at Rs. 39,95,255/-, as a part of sale consideration. Accordingly the Assessing Officer determined the value of sale consideration at Rs. 63,33,225/- (Rs.23,38,000/- + ₹ 39,95,255/-) and allowed deduction of indexed purchase cost of Rs. 25,01,231/-. Accordingly the Assessing Officer computed long term capital gain at Rs. 38.31 lakhs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed by any authority of a State Government (hereafter in this section referred to as the stamp valuation authority ) for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer. In the instant cases, the valuation adopted by the authority of the State Government for the purposes of payment of stamp duty was ₹ 93,52,000/-, whereas the value of sale consideration (after including the val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale consideration and hence they should be considered have paid entire consideration in respect of new flat. Accordingly he submitted that the assessees have fully utilized the capital gains in purchase of new flat. He further submitted that the CBDT itself has observed that the utilization of capital gain alone is relevant and taking possession of flat was a formality. Accordingly he contended that the assessees should be allowed deduction u/s 54 of the Act on the cost of new flat. The Ld A.R placed reliance on the following case law in support of his contentions. (a) CIT Vs. Mrs. Hilla J B Wadia (216 ITR 376)(Bom) (b) Pr. Cit Vs. C.Gopalaswamy (2016)(384 ITR 307)(Kar) (c) Muthuletchumi Janardanan Vs, DCIT (2012)(34 CCH 0193)(Coch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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