Section 50C not applicable if assessee invested entire “Actual Net Sale Consideration” in new house property u/s 54F – Lucknow Tribunal also confirmed it
Section 50C not applicable if assessee invested entire “Actual Net Sale Consideration” in new house property u/s 54F – Lucknow Tribunal also confirmed it
Section 54F, read with sections 48 and 50C, of the Income-tax Act, 1961 – Capital gains – Exemption of, in case of investment in residential house(Condition precedent) – Assessment year 2013-14 – Assessee sold agricultural land for Rs. 27.46 lakh and invested entire sale consideration in a house property – He claimed deduction under section 54F – Value of land as per circle rate was Rs. 58.06 lakh and DVO determined fair market value at Rs. 40.64 lakh – Assessing Officer sought to treat value of property at Rs. 40.64 lakh for charging capital gains – Whether deeming fiction created in section 50C is limited only to extent and for purpose of section 48 and this deeming fiction cannot be extended or interpreted as meant for purpose of other provisions of Act including section 54F – Held, yes – Whether for purpose of section 54F what is relevant is investment of net consideration – Held, yes – Whether net consideration as determined under section 50C based on stamp duty authority valuation is not a consideration which has been received by or has accrued to assessee – Held, yes – Whether since entire net consideration (whatever had physically received and accrued to assessee) had been invested, provisions of section 54F(1)(a) were complied with by assessee and, therefore, assessee became eligible for deduction in respect of whole of capital gains to be computed under section 45, read with sections 48 and 54F(1)(a) – Held, yes [Para 7] [In favour of assessee]
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