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TMI Blog2018 (10) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... eived and accrued to the assessee, the entire amount has been invested and in such circumstances, provisions of section 54F(1)(a) are complied with by the assessee and, therefore, assessee becomes eligible for deduction in respect of whole of the capital gains to be computed under section 45 read with section 48 and 54F(1)(a) of the Act. In this view of the matter, we set aside the order of the ld. CIT(A) and allow the appeal of the assessee. - ITA No.571/LKW/2017 - - - Dated:- 31-8-2018 - SHRI. T.S. KAPOOR, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY,JUDICIAL MEMBER For The Appellant : Shri Yogesh Agrawal, Advocate For The Respondent : Smt. Pinki Mahawar, D.R. ORDER PER PARTHA SARATHI CHAUDHURY, J.M: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he meaning of the words 'full value of consideration' as mentioned in Sec. 50C. Section 54F is an independent section as has also been provided in the charging section 45 and thus as the cost of the new asset is more than the net consideration the whole of the capital gains is not chargeable to tax and thus as the action of the Ld. CIT (A)'s is unjust, arbitrary and against the settled principles of law the same may kindly be ordered to be quashed and relief granted accordingly. NOTWITHSTANDING AND WITHOUT PREJUDICE TO ALL THE ABOVE GROUNDS:- 4. The Ld. CIT (A)'s further erred on facts and in law in ignoring the objections filed against the departmental valuation officers report valuing the property at ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see was required to explain as to why the capital gain on entire consideration of ₹ 58,06,000/- (as per provisions of section 50C) may not be charged. The assessee submitted that whatever sale consideration was received by him, has been invested under section 54F and, therefore, provisions of section 50C are not attracted. The Assessing Officer was not convinced with the submissions of the assessee and has held that provisions of sections 45, 48 and 50C of the Act applies to the case of the assessee and deduction under section 54F of the Act is not applicable. The Assessing Officer was of the opinion that sections 45 and 48 of the Acts are charging sections and provisions of section 50C of the Act are applicable as per fair market val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, it is a deeming provision and whereas section 54F is an extension to the charging section of 45 in case of capital gains wherein if net consideration received by the assessee in transferring any long term capital asset not being a residential house and thus the entire net consideration is used as the cost of new asset procured, then in such case capital gain shall not be charged under section 45 and this is a specific provision and, therefore, assessee is covered under section 54F of the Act. 4. The ld. CIT(A) after considering the submissions of the assessee, assessment order and facts of the case went with the version of the Assessing Officer and as per reasons given by him as appearing in his order, which are on record an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sections just because valuation arrived at by the concerned authority is more than the actual net consideration received by the assessee. This is simply an exercise of charging the assessee on a notional and hypothetical basis. Section 48, which the Assessing Officer says is a charging section, is actually the provision providing for mode of computation of capital gains and is not a charging section. Ld. A.R. of the assessee further submits that Revenue is also not in dispute regarding proviso to section 54F of the Act. Neither the Assessing Officer nor the ld. CIT(A) has dealt with and examined whether the net consideration received by the assessee was used for procuring new house property. They have only focused on the applicability of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the ld. D.R. to protect the interest of the Revenue. Similarly section 54F is there to protect the interest of the assessee subject to the conditions specified therein. If one is allowed to encroach upon the territory of other, then either of the provisions becomes redundant which is definitely not the intention of the Legislature. Given the facts and circumstances of every case, section 50C to be applied separately and again in another set of facts and circumstances where there is applicability of section 54F, that is to be applied. Sanctity, as we observed, with regard to section 54F is concerned, whether entire net consideration received by the assessee has been utilized or not. Assessee cannot be excepted to do more than whatever h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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