Section 54F Exemption Allowed as Section 50C Deeming Fiction Inapplicable: Chennai ITAT

Advertisement T Srikanth Vs DCIT (ITAT Chennai) The ITAT Chennai allowed the assessee’s appeal, holding that the deeming fiction under Section 50C is confined to computation of capital gains under Section 48 and cannot be extended to determine the “net consideration” for exemption under Section 54F. The assessee had disclosed actual sale consideration of Rs. 2.03 crore from the sale of one shop and four immovable properties and invested Rs. 2.16 crore in purchase of land and construction of a residential house, claiming full exemption under Section 54F. The Assessing Officer substitut...