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2014 (4) TMI 867 - AT - Income TaxDisallowance u/s 54F - construction of residential property - subsequent change in the usage of the property for non-residential use / commercial use - Held that:- It is evident from the impugned orders of the lower authorities and other material on record that intention of the parties when the development agreement was entered into was to construct a residential property. Municipal permission has also been obtained only for construction of a residential complex. Ultimately, the assessee has received possession of such residential property. It may be true that the said property was put to use subsequently for commercial use. Merely because of change in the use of such property for non-residential purposes, it cannot be said that what was acquired by the assessee was not a residential property, but a commercial one. Subsequent change in the user of the property does not disentitle the assessee to relief under S.54F of the Act. - matter remanded back to AO to consider the assessee’s claim for exemption under S.54F of the Act, subject to fulfillment of other conditions - Decided in favour of assessee.
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