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TMI Blog2022 (10) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee for excess exemption under Section 54F - Thus find no infirmity in the impugned order of the learned CIT(A) in confirming the disallowance made by the Assessing Officer on this issue and upholding the same, dismiss the appeal filed by the assessee. - ITA No. 810/Ahd/2019 - - - Dated:- 3-10-2022 - Shri P.M. Jagtap, Vice-President For the Assessee : None For the Revenue : Ms. M.M. Garg, Sr. DR ORDER This appeal filed by the assessee is directed against the order of learned Commissioner of Income-Tax (Appeals-1), Vadodara [ CIT(A) in short] dated 26.03.2019 and the solitary issue involved therein relates to the addition made by the Assessing Officer and confirmed by the learned CIT(A) on account of disallowance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ividual deriving salary from Jagdish Foods Pvt. Ltd, income from House property, income from capital gains income from other sources. As regards income from capital gains, it is submitted during year under assessment, your assessee sold one plot situated at saptarshi Soc, Old Padra Road, Baroda for Rs.10720000/-. The said plot was purchased by your assessee on 15/04/2000 for Rs. 1600000. The Index cost of investment of said land comes to Rs.2801970/- [Rs.1600000/- X 711/406]. Thus there is a net capital gain of Rs.7918030/-. Your assessee has made investment in 54EC of Rs.2000000/-. Your assessee has also made investment in new Residential house (Flat No. 101 102) of Rs. 8000000/- and claimed deduction u/s 54F of the Act of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indexed cost of acquisition. In your assessee's case the sale value of the said land is Rs.1,07,20,000/-. The indexed cost of acquisition is Rs.2801970/-. Thus, net long term capital gains is Rs. 79,18,030/- only. It may please be noted that investment in Bond u/s. 54EC of the Act is not apart of either cost of purchase or cost of improvement. The investment In Bond is an exemption. And accordingly the same can not be deducted from amount of Long term sale capital gains. The calculation made by the audit party is unwarranted. It is further submitted that as per Sec. 54F of the I.T. Act, the deduction is based on investment of long term capital gains. And not the amount of balance capital gains after deduction of exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,88,645 4. The disallowance made by the Assessing Officer on account of his claim for exemption under Section 54F of the Act to the extent of Rs.4,88,645/- was challenged by the assessee in an appeal filed before the learned CIT(A). During the course of appellate proceedings before the learned CIT(A), the submission made before the Assessing Officer was reiterated on behalf of the assessee. The learned CIT(A), however, did not find merit in the same and proceeded to confirm the disallowance made by the Assessing Officer on account of assessee s claim for exemption under Section 54F to the extent of Rs.4,88,645/- vide paragraph No.6.1.1 of his impugned order which reads as under:- 6.1.1. I find that the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing into consideration the amount of Long Term Capital Gain at Rs.79,18,030/- as against the net Long Term Capital Gain of Rs.59,18,030/- after reducing the exemption of Rs.20,00,000/- claimed under Section 54EC of the Act. As noted by the learned CIT(A) in paragraph No. 6.1.1. of his impugned order, this mistake in the working of exemption under Section 54F was accepted by the authorized representative of the assessee and keeping in view the same, the learned CIT(A) upheld the action of the Assessing Officer in disallowing the claim of the assessee for excess exemption of Rs.4,88,645/- under Section 54F of the Act. I, therefore, find no infirmity in the impugned order of the learned CIT(A) in confirming the disallowance made by the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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