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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 ..... gain that was further enhanced to 64,07,515/- in place of an amount of Rs. 30,17,456/- as declared in the return of income. The enhancement is made without applying judicious mind and the same is unjustified, unwarranted, illegal, bad in law and in any case without merits. 2. That on the facts of the case and in law, the Commissioner of Income Tax (Appeal-IV), Kanpur misdirected him to calculate and assess the long term capital gain on the sale of the property at Rs. 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 secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration as per Section 50C while determining exemption. The assessee filed appeal before the CIT(A), Ghaziabad. The Ld. AR further submitted that pending the disposal of the appeal filed before the CIT(A), Ghaziabad, a search was conducted on 19.02.2013 by the department at the business premises of the company 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 Rs. 30,17,056/- was enhanced to the Rs. 64,07,515/- as per calculations given in the order. The CIT(A) held that no e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration as per section 50C. The fiction u/s 50C is extended only to the aspect of computation of capital gains and the same does not extend to the charging section or the exemptions to the charging section. The legislature consciously intended to apply the fiction under Section 50C 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 Rs. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITO (2011) 16 taxmann.com 357 (Jaipur) viii. Gyan Chand Batra vs. ITO [2010] 6 ITR(T) 147 (Jaipur) ix. Raj Babbar vs. ITO (2013) 29 taxmann.com 11 (Mumbai Trib.) x. Commissioner of Income Tax vs. George Henderson and Co. Ltd. [1967] 66 ITR 622 (SC) xi. CIT vs. Smt. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee for exemption u/s 54F(1)(b) in respect of investment on long term capital gain but instead of taking actual sale consideration received, has adopted the figure of sale consideration by invoking Section 50C. This is not in accordance with the provision 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 Rs. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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