GOULI MAHADEVAPPA Vs. INCOME-TAX OFFICER

JUDGEMENT

(1.) The appellant-assessee sold a house plot in RMV II Stage, Bangalore, for Rs. 20,00,000/- under registered sale deed dated 5-6-2004. The Assessing Authority found that the registration value of the property fixed under the Karnataka Stamp Act, 1957 is Rs. 36,00,000/-. The assessee, however, had reinvested Rs. 24,00,000/- for construction of residential house at Gangavathi and sought exemption from the payment of capital gain tax under Section 54-F of the Income-tax Act, 1961 (for short, 'the IT Act'). The Assessing Authority found that under Section 50-C of the IT Act, the value of the property is Rs. 36,00,000/-. The cost price of site paid by the assessee at Rs. 1,93,506/- was deducted and the net income chargeable to tax under Capital Gains was assessed at Rs. 34,06,494/-. Further, the Assessing Authority given deduction of Rs. 20,00,000/- towards investment in construction of residential house at Gangavathi and assessed the long-term capital gain at Rs. 14,06,494/- and the tax payable is assessed at Rs. 4,96,989/-. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) who confirmed the order of the Assessing Officer. The assessee filed an appeal before the Income Tax Appellate Tribunal, Bangalore. The Appellate Tribunal upheld the order of the Assessing Authority and dismissed the appeal. The assessee, aggrieved by the said order of the Appellate Tribunal, has filed this appeal.

(2.) The assessee has formulated as many as 8 substantial questions of law in the appeal memo, which are as follows.--

(3.) After considering the arguments of the appellant and the Revenue, the following substantial questions of law would arise for consideration in this appeal: