125 total views
INCOME TAX OFFICER vs. SHRI RAJ KUMAR PARASHAR : ITAT- JAIPUR BENCH Exemption under s.54F:
Capital gains— Exemption under s.54F:
Full value o consideration vis-a-vis value adopted for stamp duty— As per s. 54F, on perusal of the above provisions, it is clear that the where 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 Exemption under s.54F:
Thus, where the net consideration is fully invest in the new asset, the whole of the capital gains shall not be charged under s. 45.
Net consideration for the purposes of s. 54F has been define as the full value of the consideration receive or accruing as a result of the transfer of the capital asset as reduce by any expenditure incurre wholly and exclusively in connection with such transfer.
This means that the consideration which is actually received or accrued as a result of transfer has to be invested in the new asset.
In the instant case, the consideration which has accrued to the assessee as per the sale deed is Rs. 24,60,000 and the whole of the said consideration has invest in the capital gains accounts scheme.
Consideration as determined under s. 50C base on the stamp duty authority valuation is not a consideration. Which has receive by or has accrue to the assessee. Rather, it is a value which has been deem as full value of consideration for the limit purposes of determining the income chargeable as capital gains under s. 48.
Therefore, the provisions of s. 54F(1)(a) are compile with by the assessee and he is eligible for deduction in respect of the whole of the capital gains—Provisions of s. 50C(1) are not applicable to Exemption under s.54F: for the purpose of determining the meaning of full value of consideration.