| COURT: | ITAT Jaipur |
| CORAM: | Kul Bharat (JM), Vikram Singh Yadav (AM) |
| SECTION(S): | 50C, 54F |
| GENRE: | Domestic Tax |
| CATCH WORDS: | capital gains, exemption, new residential house, stamp duty valuation |
| COUNSEL: | Hemang Gargieya |
| DATE: | September 28, 2017 (Date of pronouncement) |
| DATE: | July 28, 2018 (Date of publication) |
| AY: | 2011-12 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 50C/ 54F: If the assessee has invested the entire sale consideration in new house property, the capital gains are exempt u/s 54F. The AO cannot apply s. 50C and treat the stamp duty valuation as the consideration and assess the difference between the stamp duty valuation and the actual valuation to capital gains (All judgements considered) | |
The consideration as determined under section 50C based on the stamp duty authority valuation is not a consideration which has been received by or has accrued to the assessee. Rather, it is a value which has been deemed as full value of consideration for the limited purposes of determining the income chargeable as capital gains under section 48 of the Act. Therefore, in the instant case, the provisions of section 54F(1)(a) are complied with by the assessee and the assessee shall be eligible for deduction in respect of the whole of the capital gains so computed under section 45 read with section 48 and section 50C of the Act
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