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TMI Blog2022 (12) TMI 1343X X X X Extracts X X X X X X X X Extracts X X X X ..... ligible to claim deduction u/s 54 for deemed investment in the proposed flat to the extent of Rs.107.76 Lacs as similar deduction has been granted to both the other co-owners also. Regarding the revenue s plea that deduction u/s 54 was not to be granted for more than one property, we find that the ratio of decision of CIT V/s Gumanmal Jain [ 2017 (3) TMI 394 - MADRAS HIGH COURT] would apply. This decision considers catena of judicial decisions as well as amendment made by Finance Act, 2014 and finally held that the assessee would be eligible to claim deduction for more than one property. Following the same, Ld. AO is directed to adopt sale consideration and grant additional deduction u/s 54- We order so. The corresponding ground stand al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed to appreciate that the Assessing Officer erred in holding that the appellant was entitled to receive 1/3' share in the value of residential flats at Anna nagar towards sale consideration. 7. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the appellant had rightly worked out his computation of capital gains based on the terms of family arrangement entered into by the appellant with his mother and sister. 8. For that, without prejudice to the above, the Commissioner of Income Tax (Appeals) failed to appreciate that the appellant was eligible for deduction u/s.54 towards investment made in residential flats at Anna nagar also. 9. For that the Commissioner of Income Tax (Appeals) failed to apprec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suing alternative remedy and it would not stand to gain anything by filing the appeal with a delay. Accordingly the delay is condoned and the appeal is admitted for adjudication on merits. 3. The Ld. AR submitted that the assessee received sale consideration of Rs.75 Lacs which was offered to tax. The Ld. AR submitted that as per the terms of Joint Development Agreement dated 14.11.2012, the flat was to be shared by other co-owners only. The Ld. AR, in the alternative, pleaded for consequential deduction u/s 54. The assessment orders and Income tax Returns of the other co-owners has been placed on record to substantiate the claim. The Ld. Sr. DR supported the assessment framed by Ld. AO and submitted that the sale consideration was to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Term Capital Gains 2,91,64,224 2,91,64,224 71,64,224 Invested in Bldg. 2,20,00,000 2,20,00,000 21,64,228 Invested in Bonds 54EC 50,00,000 50,00,000 50,00,000 Expected cost in Interior 13,20,000 13,20,000 --- Taxable LTCG 8,44,224 8,44,224 --- Tax on LTCG 1,73,910 1,73,910 --- Challan No. 09868 09587 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osed flats at Rs.161.65 Lacs each and arrived at value of two flats at Rs.323.23 Lacs. Thus, the total sale consideration was computed at Rs.548.30 Lacs (Rs.225 Lacs + Rs.323.23 Lacs). The assessee s share therein would be Rs.182.76 Lacs. The benefit of indexation was allowed only from financial year 2009-10 when the assessee acquired the property. Accordingly, 1/3rd cost of acquisition was worked out at Rs.0.26 Lacs. 4.4 The assessee claimed deduction for investment in specified bonds u/s 54EC for Rs.50 Lacs. The assessee also claimed deduction u/s 54 for Rs.73.66 Lacs which was also allowed. Finally, taxable Long-Term Capital Gains were worked out at Rs.58.83 Lacs. 4.5 The assessee s further appeal stood dismissed by Ld. CIT(A) vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hree joint owners have computed capital gains in the above manner and has paid due taxes thereon accordingly. 6. The perusal of assessment framed in the hands of Smt. Mini Pillai u/s 143(3) order dated 30.03.2016 would show that Ld. AO has adopted sale consideration for this assessee at Rs.295 Lacs and granted deduction u/s 54 to the extent of Rs.220 Lacs for deemed investment in the proposed flat. After making adjustment in cost of acquisition, Ld. AO computed capital gains of Rs.24.73 Lacs. The assessee preferred further appeal to seek adjustment in cost of acquisition as well as cost of improvement which was allowed by ld. first appellate authority vide order dated 23.04.2018. 7. The perusal of assessment framed in the hands of Smt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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