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TMI Blog2020 (4) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... emption provision and it has given its applicability in itself, therefore, Section 50C will not come under picture. Long Term Capital Gain exemption is admissible u/s 54F(1)(b) wherein total taxable gain comes to ₹ 2,68,830/- only as the investment made by the assessee adopting the figure of the actual sale consideration received in consequence with Section 54F of the Income Tax Act. CIT(A) while enhancing the addition has ignored the very effect of the provisions of Section 54F. Besides this, the CIT(A) while enhancement has not given any reasons as to why the enhancement is necessary and why the assessee is not justified in adopting the figure of the actual sale consideration received. Thus the Assessing Officer as well as CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner of Income Tax (Appeal-IV), Kanpur misdirected him to calculate and assess the long term capital gain on the sale of the property at ₹ 64,07,515/- thereby ignoring all together the investment made in the purchase of the new residential house as provided under section 54F(1)(a) of the Act. The long term capital gain enhanced is unjustified, unwarranted without following the provisions contained under section 54F(1)(a) of the Act and thus bad in law. 3. Return was filed on 31.07.2014 declaring income of ₹ 12,00,080/- against which assessment was completed on a total income of ₹ 42,17,536/- on 31.03.2015. The Assessing Officer made addition of ₹ 30,17,456/- for long term capital gain. 4. Being aggrieved by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany and also at the residences of the directors. As a result of which the cases were centralized with the ACIT, and likewise, the appeal which was pending with CIT(A), Ghaziabad was transferred to the CIT(A), Kanpur. The CIT(A), Kanpur vide order dated 29.03.2016 whereby the capital gain assessed by the Assessing Officer at ₹ 30,17,056/- was enhanced to the ₹ 64,07,515/- as per calculations given in the order. The CIT(A) held that no exemption would be available since the assessee has suffered capital loss, even though capital gain is being charged to tax after application of Section 50C of the Act. The addition of long term capital gain was enhanced by the CIT(A), Kanpur from the assessed Long Term Capital Gain of ₹ 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only to the expression used in section 48 and not in any other place. Section 50C has no effect for calculating exemption u/s 54F. The long term capital gain exemption is admissible u/s 54F(1)(b) of the Act as per working provided by the assessee wherein total taxable gain is ₹ 2,68,830/- only. Deeming fiction created in Section 50C is limited only to the extent and for the purpose of section 48 and this deeming fiction cannot be extended or interpreted as meant for the purpose of other provisions of the Act including Section 54F. The process of arriving at capital gains and exemptions are distinct and separate and one does not override the other. Section 54F is an exemption provisions and a complete code in itself and since it is a c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nilofer I. Singh (2008) 309 ITR 233 (Delhi HC) xii. ITO vs. Manjit Singh [2010] 128 TTJ 82 (Chandigarh) (UO) xiii. CIT, Panji vs. V. S. Dempo Company Ltd. [2016] 387 ITR 354 (SC) xiv. CIT vs. ACE Builders (P.) Ltd. (2005) 281 ITR 210 (Bom. HC) xv. CIT vs. Assam Petroleum Industries (P.) Ltd. (2003) 262 ITR 587 (Gau. HC) Besides this, the Ld. AR also submitted that in case of assessee s wife, the issue has been decided in favour of the wife by the Tribunal in ITA No. 2235/Del/2016 order dated 18.11.2019 (Anit Miglani vs. ITO). Thus, the Ld. AR submitted that the issue is squarely covered in favour of the assessee. 6. The Ld. AR further submitted that the case laws relied by the Assessing Officer is not applicable to the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Section 50C which has created a deeming fiction. Section 54F is an exemption provision and it has given its applicability in itself, therefore, Section 50C will not come under picture. The Long Term Capital Gain exemption is admissible u/s 54F(1)(b) of the Income Tax Act, 1961 wherein total taxable gain comes to ₹ 2,68,830/- only as the investment made by the assessee adopting the figure of the actual sale consideration received in consequence with Section 54F of the Income Tax Act. Therefore, the CIT(A) while enhancing the addition has ignored the very effect of the provisions of Section 54F. Besides this, the CIT(A) while enhancement has not given any reasons as to why the enhancement is necessary and why the assessee is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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