Case Law Details
Dhanveer Singh Gambhir Vs ITO (ITAT Indore)
The issue under consideration is whether the Section 50C need to be complied at the time of computation of exemption u/s 54 or 54F?
ITAT states that, Section 54 and Section 54F are exemption provisions and a complete code in itself and since it is a complete code in itself, computation of eligible exemption has to be worked out within its framework as far as possible and deeming fiction contained in any other provision cannot be brought into section 54F. The deeming fiction created by virtue of section 50C in determining ‘capital gain’ from transfer of any long-term capital asset for purpose of section 54F has to be worked out by applying section 48 without imposing section 50C into it. Thus, it was held that for computing Capital Gain, Section 50C is to be taken into consideration but the exemption u/s 54F or 54 being a complete code in itself, exemption has to be worked out as per the provisions of that section itself. As per the provisions of Section 54, exemption is allowable with reference to the amount of Capital Gain and not with reference to the amount of net consideration. Therefore, the issue which arose with reference exemption u/s 54F wherein exemption is allowed with reference to amount of net consideration does not arise in granting exemption u/s 54. ITAT, therefore, dismiss this contention of the AR of the assessee.
FULL TEXT OF THE ITAT JUDGEMENT
This is an appeal filed by the assessee against the order of the Commissioner of Income-Tax (Appeals)-I, Indore dated 22.05.2014 for the Assessment Year 2010-11 and also stay petition for that assessment year.
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