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TMI Blog2018 (12) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. Section 54F(1)(a) clearly makes the assessee entitled for the net consideration, if the whole of such amount is paid for acquiring the new house. In the instant case, there is no dispute that the assessee has paid the whole of net consideration for acquiring the new house. On identical facts this Tribunal in the case of DCIT, Circle-2(1), Vijayawada Vs. Dr.Chalasani Mallikarjuna Rao [2016 (10) TMI 1032 - ITAT VISAKHAPATNAM] held that section 50C has no application in case the entire net sale consideration has been applied for acquiring the new house. - Decided in favour of assessee. - I.T.A.No.443/Viz/2018 - - - Dated:- 12-12-2018 - Shri V. Durga Rao, Judicial Member And Shri D.S. Sunder Singh, Accountant Member For the Appellant : Shri C.V.S.Murthy, AR For the Respondent : Smt. Suman Malik, DR ORDER PER D.S. SUNDER SINGH, ACCOUNTANT MEMBER: This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-10,Hyderabad vide I.T.A..No.0121/CIT(A)-10/2017-18/CIT(A),HYD-10/10180/2017-18 dated 15.06.2018 for the Assessment Year (A.Y.)2009-10. 2. All the grounds of appeal are related deduction u/s 54F of the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd. In this case, the assessee has sold the property for a consideration of ₹ 30,00,000/- and invested more than the amount of net consideration received by the assessee for the purpose of acquiring new residential house, thereby applied the entire net consideration in acquiring the new house. The AO computed the capital gains u/s 50C and allowed the deduction as claimed by the assessee and taxed the balance amount. The moot question in this case is whether the capital gains required to be computed by applying section 50C or not? when the assessee has invested the entire net consideration in acquiring the new house. As per section 54F of the Act, the conditions required to be satisfied for allowing the deduction u/s 54F is firstly, the asset transferred must be long term capital asset not being a residential house. Secondly, the assessee should acquire the new house within one year before the transfer or within 2 years from the date of transfer or the assessee required to construct one residential house before one year or within 3 years from the date of transfer. In the above event, the quantum of allowable deduction is, if the cost of the new asset is not less than the net c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 48 of the Act and therefore meaning of full value of consideration as referred to in explanation to section 54F(1) of the Act is not governed by the meaning of the words full value of consideration as mentioned in section 50C of the Act as held by the coordinate bench of ITAT Jaipur in the case of Gyan Chand Batra Vs. ITO (2010) 6 ITR 147. The relevant portion of the order is extracted below: From sub-s. (1) of s. 50C, it is clear that in case the consideration received is less than the value adopted by stamp valuation authority then the value so adopted is to be taken as full value of the consideration for the purposes of 5 48. Sec. 50C provides a deeming provision for considering the full value of consideration as the value adopted for stamp duty. In modern statutes, the expression 'deem' is used a great deal and for many purposes. It is at times used to introduce artificial conceptions which are intended to go beyond legal principles or to give an artificial construction of a word for phrase, Thus the artificial meaning of full value of the consideration has been given in s. 50C for the purpose of s, 48. One is entitled to ascertain the purpose for creating a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f law is that net consideration is required to be appropriated towards the purchase of the new asset. Thus deduction under s. 54F is dearly applicable. Deeming provisions as mentioned in s. 50C will not be applicable to s. 54F so far as the meaning of full value of consideration is concerned as deeming provision mentioned in S. 50C is for specific asset and for the purpose of s. 48. Hence the assessee is entitled for deduction under s. 54F. - CIT vs. Ace Builders (P) Ltd. (2005) 195 CTR (Born) 1. (2006) 281 ITR 210 (Born) and CIT vs. Assam Petroleum Industries (P) Ltd. (2003) 185 CTR (Gau) 71 (2003) 262 ITR 587 (Gau) applied. The assessee also relied on the decision of ITAT Jaipur Bench in I.T.A.No.11/JP/2016 dated 28.09.2017 in the case of ITO, Ward-2(1), Ajmer Vs. Raj Kumar Parashar, Ajmer, wherein, the coordinate Bench has taken a similar view on identical facts. We extract relevant part of the order of the coordinate bench of Jaipur as under. 8. We have heard the rival contentions and pursued the material available on record. Firstly, it is not in dispute that the AO has rightly taken the full value of consideration as determined by the stamp duty authorities as per ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re incurred wholly and exclusively in connection with such transfer. (4) The amount of the net consideration which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset took place, or which is not utilised by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139 in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit,' and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset 11. On perusal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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