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TMI Blog2018 (3) TMI 1878X X X X Extracts X X X X X X X X Extracts X X X X ..... id by the assessee within a period of three years from the date of transfer of asset, giving rise to the capital gains could be considered for deduction u/s.54 of the Act. The date of transfer of the asset giving rise to the capital gains was 15th November, 2012 and the payments made by the assessee to M/s. Aarthik Properties Limited after the said date was 5,00,000/- only. We are therefore of the opinion that lower authorities were justified in restricting the claim u/s.54 of the Act to the amounts paid by the assessee after 15.11.2012. Computation of capital gains - application of Section 50C - disallowance of claim for improvement - HELD THAT:- Assessing Officer is left with no choice but to consider the full value of consideration at th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned assessment year declaring income of H2,52,480/-. During the relevant previous year, assessee had sold flat at Abhiramapuram, Alwarpet, Chennai on 15th November, 2012 to one Smt. B. Parvathy. The sale consideration mentioned in the document was H69,00,000/-, though market value of the property was declared at H99,00,000/-. Ld. Assessing Officer required the assessee to explain why Section 50C of the Act should not be applied for determining full value of consideration. Since assessee objected to this, ld. Assessing Officer made a reference to the Department Valuation Cell. However, ld. Assessing Officer completed the assessment, considering the full value of the consideration as H99,00,000/-, since he could not receive the repor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the value fixed by the DVO. The DVO had fixed the fair market value of the property sold by the assessee at H89,97,752/-. Ld. Commissioner of Income Tax (Appeals) directed the ld. Assessing Officer to rework the capital gains considering H89,97,752/- as the full value of consideration on sale of the asset. Viz-a-viz, claim of the assessee u/s.54 of the Act, ld. Commissioner of Income Tax (Appeals) upheld the order of the ld. Assessing Officer. Viz-a-viz the claim for reduction of indexed cost of improvement though the assessee produced photocopies of two bills. Ld. Commissioner of Income Tax (Appeals) noted that assessee had himself withdrawn the relevant ground. 8. Now before us, the ld. Authorized Representative strongly assailing the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndividual or a Hindu undivided family the capital gain arises from the transfer of a long-term capital asset being buildings or lands appurtenant thereto, and being a residential house, the income of which is chargeable under the head "Income from house property" (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, a residential house, then instead of the capital gain being charged to income-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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o sell the SCHEDULE "B" 'ROPERTY to the PURCHASER or to their nominees, as mentioned in the SCHEDULE"B" PROPERTY to a Total sale consideration of ₹ 44,36,OOO/- (Rupees Forty Four Lakhs Thirty Six Thousand Only) and the PURCHASER shall buy the said SCHEDULE "B" Property for the above sale consideration and have agreed to the terms of payment to be made as per the terms set hereunder. 2. (a) An advance payment of ₹ 17,18,000/- (Rupees Seventeen Lakhs Eighteen Thousand only) is paid by cheque No.1 07405 Dated 26/07/2012, drawn on ICICI Bank, Numgambakkam Branch for a sum of ₹ 17, 18,000 /- (Rupees Seventeen Lakhs Eighteen Thousand Only), at the time of signing of this agreement. (b). Bala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the opinion that lower authorities were justified in restricting the claim u/s.54 of the Act to the amounts paid by the assessee after 15.11.2012. 12. Viz-a-viz application of Section 50C of the Act, once the said section is invoked, ld. Assessing Officer is left with no choice but to consider the full value of consideration at the amount fixed by the DVO, if it is lower than what has been fixed for stamp duty. We cannot find any infirmity in the order of the ld. Commissioner of Income Tax (Appeals) on this issue also. As for the claim for improvement expenses what was mentioned by the assessee in its letter filed before ld. Commissioner of Income Tax (Appeals) is reproduced hereunder:- ''The said grounds of appeal raised by me relat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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