I am sharing link of a PDF.. it mentions the case of - ACIT v. Shri C RAmabrahmam (2012)

https://www.kpmg.com/IN/en/services/Tax/FlashNews/Ramabrahmam.pdf

Tribunal held that as the provisions under which the deduction was claimed are altogether different, assesee can simultaneously claim deduction for the same amount under 2 different sections. EVEN IF it amounts to DOUBLE DEDUCTION

Also let us take an example different from th above query. (do not mix both)

Mr. A purchased a House property on loan. he repaid the installments in 10 years. with principal repayment each year being rs 1.5 lacs. Also paid interest amounting rs. 3 lacs. adequate deduction u/s 24b was also taken for interest paid.

Now in 10 th year, he sold the house property for rs. 32 lacs.

To compute the cap gains- 

Sale Consideration                                     32 lacs

(-)  COA (15 + 3)* Indexation benefit            20 lacs   (assume 20 lacs is the amount after indexation)

Hence Cap gains   =  12 lacs

So in this case assesee first took benefit of 15 lacs in 80C, then he took the benefit of same 15 lacs in the 10th year, in the form of deduction as COA.  same with interest amount.

This is whats normally done. So..is'int it also a DOUBLE BENEFIT..... which should not be allowed....... 

That case is different I think. There was not application of funds .In our case it is application of funds which commonly used to gain double tax advantage.

When Corporates cry of double taxation then govt has to agree

When Corporates/indivuduals take advantage of double tax avoidance then ???

In the same assesment year no advantage is taken.

The 15 lacs principal is taken over10 different assesment year. 

COA IS HIS BIRTH RIGHT TO TAKE to calculate  12 lac gains.

while in previous case  gains u/s 54E leads to tax liability being reduced.

These are two seperate issues I think.

Section 80C & 54F r different streams. and deduction under both can be claimed. refer the link.

https://www.itatonline.org/forum/index.php?topic=796.0

That is also opinion of the forum members. 

After giving a thought - I come to following conclusion which is obvious 

1) Selling price of LG asset consists of two parts (actually four) 

        a) cost price  b) the Gains Part

Only b)  gains part needs exemtion u/s 54F  and CP is obviously & natuarally not taxed

If at all a scrutiny comes up one can say the  Stamp Duty & Regd was funded from CP.  

Problem again will rise though if CP itself is far less than 1.5 lakhs the 80C

As long as scrutiny does not  come up it is OK. otherwise the AO are having big lenses in their eyes.

Thanks every1 for a good discussions

After  26 refunds out of 29 returns and My wife's  19 refunds out of 22 returns taught me something each time. 

Benefit of both can be taken as under:

LTCG: Say Rs. 8,00,000

Less 54(F): Investment*LTCG/Sale consideration - (Considering entire SC invested): Rs. 8,00,000

Income from othe sources: Say 400000/-

Therefore, GTI=0+4L= 4Lakh

Less. Deduction for stamp duty and reg charges: 150000 max

NTTI: 4L-1.5L = 2.5L

Tax = NIL

Hope I am Clear

Thanks all for this fruitful discussion. 

dear madam,

Entire amount Exempted Under sec 54 F 

Once the amount Exempted you Can not Claim Deduction 

Originally posted by : balakrishna
	dear madam, Entire amount Exempted Under sec 54 F  Once the amount Exempted you Can not Claim Deduction

In absence of any specific provision in the law, which restricts the same, we wl always go for the benefit of assessee.. & hence claim exemption & deduction  in both sections is possible. in my views.