Hem Raj Jain, Ludhiana V. ITO, Ludhiana

ITA 509/CHANDI/2010

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68565 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-10-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 03-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J S NAGAR
• Assessee Lawyers: D K GOYAL
• Keywords: Sale consideration of property below Jantri Value; Capital asset; Fair market value
• Section: 50C; 54F; 54

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI T.R. SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 509/CHD/2010 ASSESSMENT YEAR: 2006-07 SHRI. HEM RAJ JAIN, VS. THE ITO S/O SH. PAWAN KUMAR JAIN WARD 1(1) VALLABH WOOL INDUSTRIES LUDHIANA, B-373, CHANDIGARH ROAD, LUDHIANA PAN NO. AAYPJ0622M (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. D.K. GOYAL RESPONDENT BY : SHRI. J.S. NAGAR DATE OF HEARING : 10/10/2013 DATE OF PRONOUNCEMENT : 07/11/2013 ORDER PER T.R.SOOD, A.M. THE APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A)- I, LUDHIANA DATED 22.02.2010. 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEA L:- 1) THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL S) 1 LUDHIANA HAS ERRED IN LAW AND FACTS BY TAKING THE SALE VALUE OF LAND U/S 50C AMOUNTING TO RS. 4500000/- INSTEAD OF RS. 3000000/-. 2) THAT THE SALE VALUE OF LAND U/S 50C IS 30 LAC AND N OT 45 LAC 2 3) THAT THE MARKET VALUE OF THE LAND IS 30 LAC WHICH T HE ASSESSEE RECEIVED. AND THE MARKET VALUE AS PER STAM P DUTY IS RS. 4,78,125/- ONLY. 4) THAT THE ASSESSEE HAS WITHDRAWN A SUM OF RS. 82000/ - WITHIN THREE YEARS FROM M/S VALLABH WOOL INDUSTRIES AND THE AMOUNT IS INVESTED IN THE RESIDENTIAL HOUSE, TH E SAME SHOULD HAVE BEEN ALLOWED U/S 54F. 3. AFTER HEARING BOTH THE PARTIES, WE FIND THAT DUR ING ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER NOTICED THAT ASSE SSEE HAS SOLD A PLOT MEASURING 7 KANALS 13 MARLAS AT VILLAGE JANDILI TEH SIL LUDHIANA ON 14.10.2005 AND THE SALE PROCEEDS WERE DECLARED AT R S. 30 LAKHS. THE LAND WAS SOLD TO A.K.M.E. PROJECTS LTD., NEW DELHI. FR OM THE PERUSAL OF THE SALE DEED, IT WAS NOTICED THAT STAMP DUTY HAS BEEN PAID AT RS. 4,05,000/- ON THE TRANSACTION AMOUNT OF RS. 45 LAKHS AND NOT A T RS. 30 LAKHS AS CLAIMED BY THE ASSESSEE. IT WAS FURTHER SEEN THAT ON PAGE 11 OF THE SALE DEED, OVERWRITING HAS BEEN DONE AND THE SUM OF RS. 45 LAKHS HAS BEEN CHANGED TO RS. 30 LAKHS AND RS. 22,50,000/- H AS BEEN MANUALLY CHANGED TO RS.15 LAKHS BOTH IN WORDS AND FIGURES. SOME OVERWRITING HAS BEEN DONE AT PAGES 1, 3 & 13 OF THE SALE DEED. THE REFORE, ASSESSEE WAS ASKED AS TO WHY THE SALE CONSIDERATION SHOULD NOT B E TREATED AS RS. 45 LAKHS AND IN RESPONSE IT WAS STATED AS UNDER:- IT MAY KINDLY BE NOTED THAT DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE SOLD LAND WORTH RS. 30 LACS IN THE CONSTRUCTION OF RESIDENTIAL BUILDING U/S 54F. YOUR GOODSELF HAS POINTED OUT THAT PURCHASER HAS PURCHASED STAMP DUTY PAPERS TO THE TUNE OF RS. 45 LACS VALUE AND THE SAI D AMOUNT SHOULD HAVE BEEN SPENT U/S 54 F BY APPLYING SECTION 50 C. I JUST WANT TO DRAW YOUR INTENTION THAT THE ASSESSEE HAS SOLD THE LAND FOR RS. 30 LACS. AS MENTIONED IN THE REGIS TERED DEED THAT THE FAIR MARKET VALUE OF THE LAND IS 5 LACS P ER ACRE. THE 3 ASSESSEE HAD SOLD 7 KANALS 13 MARLAS. IT IS VERY CL EARLY MENTIONED IN THE REGD. DEED THAT THE FAIR MARKET VA LUE OF THE LAND IS RS. 4,78,125/-. THIS MEANS THAT THE STAMP V ALUATION AUTHORITY CAN ONLY ASK TO PUT THE STAMPS ON RS. 4,7 8,125/-. THIS MEANS THAT THE STAMP VALUATION AUTHORITY CAN O NLY ASK TO PUT THE STAMPS ON RS. 4,78,125/-. THE AUTHORITY CANNOT FORCE THE PURCHASER TO PUT MORE STAMPS ON THE REGD. DEED. THE AUTHORITY CANNOT FORCE TO PAY MORE. IN SIMPLE W ORDS THE FAIR MARKET VALUE OF THE LAND IS RS. 4,78,125/- AS MENTIONED IN THE REGD. DEED. SIMPLY THE PURCHASER PURCHASED T HE STAMP PAPER MORE DOES NOT MEAN THAT THE VALUE OF THE LAND HAS INCREASED. THE ASSESSEE HAS RECEIVED RS. 30 LACS FR OM THE PURCHASER AND THE SAME HAS INVESTED IN THE CONSTRUC TION OF THE RESIDENTIAL HOUSE. APART FROM THIS THE ASSESSEE HAS PURCHASED SHARE OF LAND FOR RS. 5 LACS FOR CONSTR UCTION OF HOUSE AND PHOTOCOPY OF THE DEED HAS ALREADY GIVEN T O YOUR GOODSELF. I JUST WANT TO INFORM YOU THAT MOST OF TH E PEOPLE PURCHASED AND SOLD THE LAND AT RS. 5 LACS PER ACRE AND PUT THE STAMP PAPERS ACCORDINGLY. IT IS THE ASSESSEE ONLY W HO HAS SOLD THIS LAND AT SUCH A HIGH VALUE. THESE FACTS MA Y BE VERIFIED FROM THE TEHSEEL OFFICE. UNDER THE CIRCUMS TANCES , YOU ARE REQUESTED TO PLEASE ACCEPT THE DECLARED RET URN AND OBLIGE. 4. ACCORDING TO ASSESSING OFFICER, THE ABOVE REPLY WAS NOT ACCEPTABLE BECAUSE AS PER SECTION 50C, THE SALE CONSIDERATION HAS TO BE TAKEN ON THE SAME VALUE FOR WHICH IT HAS BEEN OFFERED TO STAMP V ALUATION AUTHORITY. ACCORDINGLY, THE SALE CONSIDERATION WAS TAKEN AT RS . 45 LAKHS. 5. THE ASSESSEE HAS ALSO CLAIMED DEDUCTION U/S 54F. IN THIS REGARD, IT WAS SUBMITTED AS UNDER:- SO FAR AS CONSTRUCTION OF PROPERTY IS CONCERNED T HE ASSESSEE HAS WITHDREW A SUM OF RS. 22,67,698/- FROM DENA BAN K SAVING BANK ACCOUNT CAPITAL GAIN SCHEME / 10103. PHOTO COP Y OF THE SAME IS ATTACHED. AMOUNT WITHDRAW WITH IN THREE YEA RS FROM THE SALE OF PROPERTY. BEFORE OPENING THE ACCOUNT ASSESS EE PURCHASED MATERIAL AND STARTED WORK ON THE PLOT AND INVESTED ABOUT MORE 4 THAN RS. 3 LACS. THE ASSESSEE WITHDREW A SUM OF RS. 8,20,000/- FROM THE VALLABH WOOL INDUSTRIES WITH IN THREE YEAR S FOR CONSTRUCTION OF BUILDING. ASSESSEE ALSO PURCHASED L AND FOR CONSTRUCTION OF HOUSE 5 LACS WHICH ALSO INCLUDES FO R CONSTRUCTION PURPOSE. PHOTOCOPY OF THE PURCHASE OF LAND ALREADY FILED. AS PER CIRCULAR OF CBDT, THE COST OF THE LAND IS AN INTEGR AL PART OF THE COST OF THE RESIDENTIAL HOUSE, WHETHER PURCHASED OR CONSTRUCTED (CIRCULAR NO. 667, DATED 18.10.1993). IN SHORT PAYMENT FOR CONSTRUCTION IS AS UNDER: PURCHASE OF PLOT 5,00,000/- WITHDRAWN FROM CAPITAL GAIN SAVING SCHEME WITHIN TH REE YEARS 22,67,698/- WITHDRAWN FORM VALLABH WOOL INDUSTRIES WITHIN THREE YEARS 8,20,000/- THUS TOTAL INVESTMENT IN THREE YEARS ARE ABOUT 35,87,698/- 6. THE ABOVE SUBMISSION WAS NOT FOUND TO BE IN ORDE R BECAUSE THE ASSESSEE HAD NOT SHOWN ANY PROOF REGARDING COMPLETI ON OF CONSTRUCTION AND THEREFORE, ASSESSING OFFICER REJECTED THE CLAIM FOR DEDUCTION U/S 54F.. 7. ON APPEAL BEFORE THE CIT(A), IT WAS MAINLY SUBMI TTED THAT ASSESSEE HAS SOLD 7 KANAL 13 MARLAS PLOT FOR RS. 30 LAKHS. THE SAID AMOUNT OF RS. 30 LAKHS WAS SPENT ON THE CONSTRUCTION OF RESIDENTI AL BUILDING. IT WAS SUBMITTED THAT PURCHASER HAS PURCHASED STAMP PAPERS FOR MORE THAN THE VALUE AND THE LAND WAS ACTUALLY SOLD ONLY FOR RS. 3 0 LAKHS. THE FAIR MARKET VALUE OF THE LAND WAS ONLY RS. 4,78,125/- WH ICH IS CLEARLY MENTIONED IN THE SALE DEED ITSELF. IN FACT STAMP D UTY VALUATION AUTHORITY COULD HAVE ASKED FOR THIS VALUE ONLY AND THEREFORE, SECTION 50C IS NOT APPLICABLE. IT WAS FURTHER SUBMITTED THAT THE SUM WAS USED IN CONSTRUCTION OF A NEW BUILDING BY WITHDRAWING A SUM OF RS. 22,67 ,698/- FROM THE CAPITAL GAIN SCHEME ACCOUNT. VARIOUS BILLS FOR DOIN G CONSTRUCTION WERE FURNISHED. 8. THE LD. CIT(A) AFTER EXAMINING THE SUBMISSIONS H ELD THAT IT IS NOT CORRECT THAT SECTION 50C IS NOT APPLICABLE AND ONCE THE CONSIDERATION IS 5 LESS THAN THE VALUE ADOPTED AND ASSESSED BY ANY STA MP VALUATION AUTHORITY, THE SAME HAS TO BE ADOPTED FOR CAPITAL GAIN PURPOS ES ALSO. 9. IN RESPECT OF DEDUCTION U/S 54F OF THE ACT, THE LD. CIT(A) HAS GIVEN THE FOLLOWING FINDINGS AND ALLOWED THE CLAIM IN PAR T:- (II) AS REGARDS EXEMPTION UNDER SECTION 54F, THE AS SESSEES CONTENTION IS THAT HE ENTITLED TO EXEMPTION AS HE H AS INVESTED / DEPOSITED IN CAPITAL GAIN SCHEME TOWARDS THE CONS TRUCTION OF A NEW HOUSE. AS SECTION 54F EXEMPTION IS AVAILAB LE IF THE CONSTRUCTION OF THE NEW HOUSE IS COMPLETED WITHIN T HREE YEARS FROM THE DATE OF TRANSFER OF ORIGINAL ASSET. IN THE INSTANT CASE THE ORIGINAL ASSET HAS BEEN TRANSFERRED ON 15.10.20 05. ALSO, AS PER THE PROVISIONS OF SECTION 54F IF THE AMOUNT IS NOT UTILIZED FOR PURCHASE/CONSTRUCTION OF NEW HOUSE TIL L THE DATE OF SUBMISSION OF RETURN OF INCOME, THEN IT SHOULD B E DEPOSITED IN CAPITAL GAINS DEPOSIT ACCOUNT SCHEME. THE APPE LLANT HAD DEPOSITED A SUM OF RS. 21 LAC BEFORE 31.10.2006 I.E . DUE DATE OF FILING OF SECTION UNDER SECTION 139(1) OF THE AC T IN ACCOUNT NO. SB/CGS/100103 WITH DENA BANK. THE CLAIM OF THE ASSESSEE WITH REGARD TO EXEMPTION OF THIS AMOUNT HA S BEEN REJECTED BY THE ASSESSING OFFICE BY OBSERVING AS UN DER: THE COPY OF THE BANK ACCOUNT IN DENA BANK GIVEN BY THE ASSESSEE SHOWS DEPOSITS OF RS. 20 LACS ON 30.10.2006 AND ON 31.10.2006 AND THEREAFTER ALSO DEPOSITS HAVE BEEN MADE BY THE ASSESSEE IN THIS BAN K ACCOUNT. AS SUCH THE CREDIBILITY OF DEPOSITS IN THI S ACCOUNT BEING MADE UNDER CAPITAL GAIN SCHEME IS DOUBTFUL. ACCORDINGLY, THE SAME CANNOT BE RELIED UPON. IT WILL BE NOTED FROM THE ABOVE THAT THE CLAIM OF T HE ASSESSEE HAS BEEN REJECTED IN A VERY CASUAL MANNER WITHOUT A SSIGNING ANY REASONS. THE ASSESSEE HAS DEPOSITED THIS SUM OF RS. 21 LACS AS REQUIRED UNDER SECTION 54F OF THE ACT AND H ENCE ENTITLED TO DEDUCTION UNDER THIS SECTION. ALSO, THE APPELLANT IS ENTITLED TO EXEMPTION UNDER SECTION 54F WITH REGARD TO 6 INVESTMENT OF RS. 5,30,000/- MADE IN THE PURCHASE O F PLOT IN VIEW OF CIRCULAR NO. 667 DATED 18.10.1993 OF C.B.D. T. AS REGARDS THE CLAIM OF WITHDRAWALS FROM M/S VALLABH W OOL INDUSTRIES OF RS. 8,20,000/- WITHIN THREE YEARS FRO M THE TRANSFER OF ORIGINAL ASSET AND INVESTED IN NEW HOUS E, NO PROOF BEFORE ME HAS BEEN FLED TO THE EFFECT AS TO HOW MUC H WAS INVESTED IN THE NEW HOUSE. HENCE, IN THIS REGARD TH E CLAIM OF THE APPELLANT CANNOT BE ACCEPTED. THE ASSESSING OFF ICER IS ACCORDINGLY DIRECTED TO RECOMPUTE THE CAPITAL GAIN AFTER TAKING INTO ACCOUNT THE EXEMPTED AMOUNT AS DISCUSSE D ABOVE. 10. BEFORE US, SUBMISSIONS MADE BEFORE THE LD. CIT( A) WERE REITERATED. IT WAS MAINLY EMPHASIZED THAT FAIR MARKET VALUE OF THE LAND WAS RS. 4,78,125/- BUT THE ASSESSEE SOLD IT FOR RS. 30 LAKH S THAT IS WHY RS. 30 LAKHS WAS SHOWN AS SALE CONSIDERATION. HOWEVER, TH E PURCHASER HAD PURCHASED THE STAMP PAPERS FOR MORE THAN THE VALUE BY MISTAKE AND THAT IS WHY OVERWRITING HAS TO BE DONE. IN RESPECT OF REJE CTION OF CLAIM U/S 54F, SUBMISSIONS MADE BEFORE CIT(A) WERE REITERATED 11. ON THE OTHER HAND, THE LD. DR STRONGLY SUPPORTE D THE ORDER OF LD. CIT(A) AND ALSO REFERRED TO THE COPY OF THE SALE DE ED WHICH IS PLACED AT PAGES 4 TO 20 OF THE PAPER BOOK AND REFERRED TO VAR IOUS OVERWRITING DONE IN THE SALE DEED. 12. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS CAREFU LLY. THE PERUSAL OF THE SALE DEED CLEARLY SHOWS THAT VARIOUS OVER WRITI NGS HAS BEEN DONE IN THE SALE DEED AND VALUE HAS BEEN SOUGHT TO BE REDUC ED FORM RS. 45 LAKHS TO RS. 30 LAKHS. SECTION 50C OF THE ACT READS AS U NDER:- (1) WHERE THE CONSIDERATION RECEIVED OR ACCRUING A S A RESULT OF THE TRANSFER BY AN ASSESSEE OF A CAPITAL ASSET, BEING LAND OR BUILDING OR BOTH, IS LESS THAN THE VALUE ADOPTED OR 7 ASSESSED [OR ASSESSABLE] BY ANY AUTHORITY OF A STAT E GOVERNMENT (HEREAFTER IN THIS SECTION REFERRED TO A S THE 'STAMP VALUATION AUTHORITY') FOR THE PURPOSE OF PAY MENT OF STAMP DUTY IN RESPECT OF SUCH TRANSFER, THE VALUE S O ADOPTED OR ASSESSED [OR ASSESSABLE] SHALL, FOR THE PURPOSES OF SECTION 48 , BE DEEMED TO BE THE FULL VALUE OF THE CONSIDERATI ON RECEIVED OR ACCRUING AS A RESULT OF SUCH TRANSFER. (2) .. 13. THE PLAIN READING OF THE ABOVE PROVISIONS SHOWS THAT THE VALUE FOR THE PROPOSED CAPITAL GAIN HAS TO BE ADOPTED FROM TH E VALUE WHICH HAS BEEN ASSESSED BY ANY AUTHORITY UNDER THE STAMP ACT, THER EFORE, IT IS CLEAR THAT WHATEVER VALUE IS DISCLOSED TO THE STAMP VALUATION AUTHORITY HAS TO BE TAKEN THE VALUE FOR THE PURPOSE OF CAPITAL GAIN ALS O. WE FIND SOME FORCE IN THE SUBMISSIONS THAT SINCE ACTUAL FAIR MARKET VALUE WAS RS. 4,78,125/- AND ASSESSEE HAS ALSO SOLD THE LAND FOR MORE CONSIDERAT ION, THEREFORE, THE SAME SHOULD BE ADOPTED. HOWEVER, THIS NEEDS FURTHER VER IFICATION. THEREFORE, WE SET ASIDE THE ORDER OF LD. CIT(A) AND REMIT THE MATTER BACK TO THE FILE OF ASSESSING OFFICER. THE ASSESSING OFFICER SHOULD VERIFY THE VALUE OF LAND DECLARED FOR THE PURPOSE OF VALUATION UNDER TH E STAMP DUTY ACT,. HE SHOULD FURTHER VERIFY THE ACTUAL SALE PRICE FROM TH E PURCHASER BY ISSUING SUMMONS TO THAT PARTY AND THEN ADOPT THE VALUE WHIC H HAS BEEN DECLARED BY THE PURCHASER OR THE VALUE WHICH HAS BEEN ACCEPT ED BY THE STAMP DUTY AUTHORITIES, WHICHEVER IS HIGHER. THIS IS SO BECAU SE IF THE ASSESSEE HAS SOLD THE PROPERTY FOR MORE THAN THE STAMP VALUE THE N ACTUAL CONSIDERATION HAS TO BE RECKONED FOR THE PURPOSE OF SECTION 48. 14. AS FAR AS THE DEDUCTION U/S 54F IS CONCERNED, T HE LD. CIT(A) HAS ALREADY ALLOWED THE RELIEF IN PART. AS FAR AS THE REMAINING AMOUNT OF RS. 8,20,000/- IS CONCERNED WHICH HAS BEEN WITHDRAWN FR OM M/S VALLABH WOOL INDUSTRIES FOR WHICH NO PROOF WAS SUBMITTED BE FORE THE LOWER 8 AUTHORITY FOR INVESTMENT IN THE HOUSE OR EVEN BEFOR E US, NO EVIDENCE HAS BEEN SUBMITTED THAT THIS AMOUNT WAS INVESTED IN HOU SE. THEREFORE, IN RESPECT OF DEDUCTION U/S 54F, WE CONFIRM THE ORDER OF LD. CIT(A). 15. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIS TICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 07.11.2013 SD/- SD/- (SUSHMA CHOWLA) (T.R. SOOD) JUDICIAL MEMBER ACCOUNTANT MEMER DATED : 7 TH NOVEMBER, 2013 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH 9 (II) AS REGARDS EXEMPTION UNDER SECTION 54F, THE AS SESSEES CONTENTION IS THAT HE ENTITLED TO EXEMPTION AS HE HAS INVESTED / DEPOSITED IN CAPI TAL GAIN SCHEME TOWARDS THE CONSTRUCTION OF A NEW HOUSE. AS SECTION 54F EXEMPTI ON IS AVAILABLE IF THE CONSTRUCTION OF THE NEW HOUSE IS COMPLETED WITHIN THREE YEARS FROM THE DATE OF TRANSFER OF ORIGINAL ASSET. IN THE INSTANT CASE THE ORIGINAL ASSET HAS BEEN TRA NSFERRED ON 15.10.2005. ALSO, AS PER THE PROVISIONS OF SECTION 54F IF THE AMOUNT IS NOT UTIL IZED FOR PURCHASE/CONSTRUCTION OF NEW HOUSE TILL THE DATE OF SUBMISSION OF RETURN OF INCO ME, THEN IT SHOULD BE DEPOSITED IN CAPITAL GAINS DEPOSIT ACCOUNT SCHEME. THE APPELLA NT HAD DEPOSITED A SUM OF RS. 21 LAC BEFORE 31.10.2006 I.E. DUE DATE OF FILING OF SECTIO N UNDER SECTION 139(1) OF THE ACT IN ACCOUNT NO. SB/CGS/100103 WITH DENA BANK. THE CLAIM OF THE ASSESSEE WITH REGARD TO EXEMPTION OF THIS AMOUNT HAS BEEN REJECTED BY THE A SSESSING OFFICE BY OBSERVING AS UNDER: THE COPY OF THE BANK ACCOUNT IN DENA BANK GIVEN BY THE ASSESSEE SHOWS DEPOSITS OF RS. 20 LACS ON 30.10.2006 AND ON 31.10. 2006 AND THEREAFTER ALSO DEPOSITS HAVE BEEN MADE BY THE ASSESSEE IN THIS BANK ACCOUNT. AS SUCH THE CREDIBILITY OF DEPOSITS IN THIS ACCOUNT BEING MADE UNDER CAPITAL GAIN SCHEME IS D OUBTFUL. ACCORDINGLY, THE SAME CANNOT BE RELIED UPON. IT WILL BE NOTED FROM THE ABOVE THAT THE CLAIM OF T HE ASSESSEE HAS BEEN REJECTED IN A VERY CASUAL MANNER WITHOUT ASSIGNING ANY REASONS. THE AS SESSEE HAS DEPOSITED THIS SUM OF RS. 21 LACS AS REQUIRED UNDER SECTION 54F OF THE ACT AN D HENCE ENTITLED TO DEDUCTION UNDER THIS SECTION. ALSO, THE APPELLANT IS ENTITLED TO EX EMPTION UNDER SECTION 54F WITH REGARD TO INVESTMENT OF RS. 5,30,000/- MADE IN THE PURCHASE O F PLOT IN VIEW OF CIRCULAR NO. 667 DATED 18.10.1993 OF C.B.D.T. AS REGARDS THE CLAIM O F WITHDRAWALS FROM M/S VALLABH WOOL INDUSTRIES OF RS. 8,20,000/- WITHIN THREE YEAR S FROM THE TRANSFER OF ORIGINAL ASSET AND INVESTED IN NEW HOUSE, NO PROOF BEFORE ME HAS B EEN FLED TO THE EFFECT AS TO HOW MUCH WAS INVESTED IN THE NEW HOUSE. HENCE, IN THIS REGAR D THE CLAIM OF THE APPELLANT CANNOT BE ACCEPTED. THE ASSESSING OFFICER IS ACCORDINGLY DIRE CTED TO RECOMPUTE THE CAPITAL GAIN AFTER TAKING INTO ACCOUNT THE EXEMPTED AMOUNT AS DI SCUSSED ABOVE. IT MAY KINDLY BE NOTED THAT DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE SOLD LAND WORTH RS. 30 LACS IN THE CONSTRUCTION OF RESIDENTIA L BUILDING U/S 54F. YOUR GOODSELF HAS POINTED OUT THAT PURCHASER HAS PURCHASED STAMP DUTY PAPERS TO THE TUNE OF RS. 45 LACS VALUE AND THE SAID AMOUNT SHOULD HAVE BEEN SPENT U/ S 54 F BY APPLYING SECTION 50 C. I JUST WANT TO DRAW YOUR INTENTION THAT THE ASSESSEE HAS SOLD THE LAND FOR RS. 30 LACS. AS MENTIONED IN THE REGISTERED DEED THAT THE FAIR MARK ET VALUE OF THE LAND IS 5 LACS PER ACRE. THE ASSESSEE HAD SOLD 7 KANALS 13 MARLAS. IT IS VER Y CLEARLY MENTIONED IN THE REGD. DEED THAT THE FAIR MARKET VALUE OF THE LAND IS RS. 4,78, 125/-. THIS MEANS THAT THE STAMP VALUATION AUTHORITY CAN ONLY ASK TO PUT THE STAMPS ON RS. 4,78,125/-. THIS MEANS THAT THE STAMP VALUATION AUTHORITY CAN ONLY ASK TO PUT THE S TAMPS ON RS. 4,78,125/-. THE AUTHORITY CANNOT FORCE THE PURCHASER TO PUT MORE STAMPS ON TH E REGD. DEED. THE AUTHORITY CANNOT FORCE TO PAY MORE. IN SIMPLE WORDS THE FAIR MARKET VALUE OF THE LAND IS RS. 4,78,125/- AS MENTIONED IN THE REGD. DEED. SIMPLY THE PURCHASER P URCHASED THE STAMP PAPER MORE DOES NOT MEAN THAT THE VALUE OF THE LAND HAS INCREASED. THE ASSESSEE HAS RECEIVED RS. 30 LACS FROM THE PURCHASER AND THE SAME HAS INVESTED IN THE CONSTRUCTION OF THE RESIDENTIAL HOUSE. APART FROM THIS THE ASSESSEE HAS PURCHASED SHARE OF LAND FOR RS. 5 LACS FOR CONSTRUCTION OF HOUSE AND PHOTOCOPY OF THE DEED HAS ALREADY GIVE N TO YOUR GOODSELF. I JUST WANT TO INFORM YOU THAT MOST OF THE PEOPLE PURCHASED AND SO LD THE LAND AT RS. 5 LACS PER ACRE AND PUT THE STAMP PAPERS ACCORDINGLY. IT IS THE ASSESSE E ONLY WHO HAS SOLD THIS LAND AT SUCH A HIGH VALUE. THESE FACTS MAY BE VERIFIED FROM THE TE HSEEL OFFICE. UNDER THE CIRCUMSTANCES , YOU ARE REQUESTED TO PLEASE ACCEPT THE DECLARED R ETURN AND OBLIGE. SO FAR AS CONSTRUCTION OF PROPERTY IS CONCERNED T HE ASSESSEE HAS WITHDREW A SUM OF RS. 22,67,698/- FROM DENA BANK SAVING BANK ACCOUNT CAPI TAL GAIN SCHEME / 10103. PHOTO 10 COPY OF THE SAME IS ATTACHED. AMOUNT WITHDRAW WITH IN THREE YEARS FROM THE SALE OF PROPERTY. BEFORE OPENING THE ACCOUNT ASSESSEE PURCH ASED MATERIAL AND STARTED WORK ON THE PLOT AND INVESTED ABOUT MORE THAN RS. 3 LACS. THE A SSESSEE WITHDREW A SUM OF RS. 8,20,000/- FROM THE VALLABH WOOL INDUSTRIES WITH IN THREE YEARS FOR CONSTRUCTION OF BUILDING. ASSESSEE ALSO PURCHASED LAND FOR CONSTRUC TION OF HOUSE 5 LACS WHICH ALSO INCLUDES FOR CONSTRUCTION PURPOSE. PHOTOCOPY OF THE PURCHASE OF LAND ALREADY FILED. AS PER CIRCULAR OF CBDT, THE COST OF THE LAND IS AN INTEGR AL PART OF THE COST OF THE RESIDENTIAL HOUSE, WHETHER PURCHASED OR CONSTRUCTED (CIRCULAR N O. 667, DATED 18.10.1993). IN SHORT PAYMENT FOR CONSTRUCTION IS AS UNDER: PURCHASE OF PLOT 5,00,000/- WITHDRAWN FROM CAPITAL GAIN SAVING SCHEME WITHIN TH REE YEARS 22,67,698/- WITHDRAWN FORM VALLABH WOOL INDUSTRIES WITHIN THREE YEARS 8,20,000/- THUS TOTAL INVESTMENT IN THREE YEARS ARE ABOUT 3 5,87,698/- 11