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TMI Blog2020 (8) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... Defence Colony, New Delhi in respect of which the deductions u/s 54F was claimed. There is no dispute with regard to the amount of investment in the construction of the house at D-279, Defence Colony, New Delhi claimed at Rs. 1,76,95,024/- which was provided out of the capital gain a/c. scheme provided permissible under the law. 3. During the year under consideration, the assessee has sold immovable property at Plot No. T-2/2, DLF City, Phase-III, Gurgaon on 28.04.2011 and claimed deduction u/s 54F of the Income Tax Act, 1961 on account of construction of house at D-279, Defence Colony, New Delhi. The calculation of long term capital gain as per computation of income was as under: Long Term Capital Gains FLAT Full value of consideration 27700000 Less: Index Cost of acquisition 5849352 Less: Index Cost of improvement 185967 6035319 Less: Exempt u/s 54 17695024 Total Long Term Capital Gains 3969657 Total Capital Gains 3969657 4. The AO found from the submission of the assessee that the assessee has also purchased a residential flat at Rajendra Nagar on 07.09.2011 and since the assessee has already having another ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say,- (i) if the amount of the capital gain [is greater than the cost of [the residential house] so purchased or constructed (hereafter in this section referred to as the new asset)], the difference between the amount of the capital gain and the cost of the new asset shall be charged under section 45 as the income of the previous year; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase or construction, as the case may be, the cost shall be nil; or (ii) if the amount of the capital gain is equal to or less than the cost of the new asset, the capital gain shall not be charged under section 45; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase or construction, as the case may be, the cost shall be reduced by the amount of the capital gain. Following provisos shall be inserted after clause (ii) of sub-section (1) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch amount in accordance with the scheme aforesaid. Explanation.-[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.] Section 54F" (1) [Subject to the provisions of subsection (4), where, in the case of an assessee being an individual or a Hindu undivided family], the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or [two years] after the date on which the transfer took place purchased, or has within a period of three years after that date [constructed, one residential house in India] (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,- (a) if the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45; (b) if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear in which such new asset is transferred.] [(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 scheme76 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 : Provided that if the amount deposited unde ..... 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