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TMI Blog2022 (4) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 143(3) r.w.s. 147 of the Act. Heard both the parties. Case files perused. 2. Learned authorized representative appearing at the assessee's behest states that he pressed for her identical sole substantive grounds in A.Y. 2008-09 on merits that both the lower authorities have erred in law and on facts in treating the corresponding Joint Development Agreement dt. 14.09.2017; followed by supplementary agreement dt. 19.07.2008 as an instance of transfer within the meaning of section 2(47)(v) of the Act. We note in this factual backdrop that the learned lower authorities have treated the assessee's foregoing joint development agreement as part-performance u/s. 2(47)(v) r.w.s. 53A of the Transfer of Property Act giving rise to long ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consequential capital gains arising from the joint development agreement dt. 14.09.2017. The assessee succeeds in her latter substantive grounds as well as in main appeal ITA No. 215/Hyd/2019 to this effect. All other pleadings therein are rendered academic. Coming to the assessee's latter appeal ITA No. 216/Hyd/2019, learned counsel states very fairly that the same stands rendered academic in light of our findings in her former appeal hereinabove. Ordered accordingly. 4. We now advert to the Revenue's cross appeals ITA Nos. 217 and 218/Hyd/2019 seeking to reverse the CIT(A)'s findings holding the assessee as entitled for section 54F deduction vide following detailed discussion: 4.3 The additional Ground No. (iv) is alternat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gam 226 Taxman 197 (Mad). In this regard, the appellant submits as under: * This is a case in which the AO was of the opinion that capital gain is assessable in the year of development agreement taking into account the notional value as deemed consideration for working out 'full value of consideration for computing capital gain under section 45 read with section 48. He was of the view that capital gain accrued during the assessment year 2008-09 which was the year of 'transfer' took place. He was also of the view that receipt of consideration is not material and a notional/deemed consideration would suffice. It is submitted that in the same logic he should have allowed deduction under section 54F on a notional basis since house ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t also imagine as real the consequences and incidents which, if the putative stat of affairs had in fact existed, must inevitably have flowed from or accompanied it; and if the statute says that you must imagine a certain state of affairs, it cannot be interpreted to mean that having done so, you must cause or permit your imagination to boggle when it comes to the inevitable corollaries of that state of affairs." Following this principle, it can be safely concluded that a deemed provision should be applied and followed to its logical conclusion When the full value of consideration is fictionally determined under section 45 read with 48, the same should be extended to allowing the deduction under section 54F as otherwise the computation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above judicial precedents, completion of construction is not a requirement to claim deduction under section 54F, Even otherwise, these views being favourable to the appellant, the same may be adopted as decided by Supreme Court in the case of CIT v. Vegetable Products Ltd. [1973] 88 ITR 192 318." 4.3.1 I have considered the ground revised and the submissions of the assessee. The adjudication of above issue does not require any new facts and the same can be done based on assessment records and legal submissions. On consideration of ratio laid down by various judicial fora relied on by the assessee, it is seen that the assessee is eligible for deduction u/s. 54F. The balance sheet filed by the assessee along with return of income shows t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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