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2019 (6) TMI 835 - AT - Income TaxDeduction u/s 54, 54F & 54EC - capital gains arising out of a single transaction of sale of immovable property - no such claim was made in the return of income - HELD THAT:- CIT(A) was of the opinion that this premise is not wholly correct as the assessee of its own accord had made a claim u/s 54E in the return of income. It did not foresee that the AO would not be convinced with the claim. The claim u/s 54F therefore originated only during the course of assessment proceedings during which the AO treated only part of the land as appurtenant to the building. AO made the disallowance following in the case of Asha George [2013 (1) TMI 545 - KERALA HIGH COURT]. Even if such decision is accepted, the assessee cannot be denied of the deduction claimed u/s 54F to which it is entitled, as long as there is no dispute on the investment in new asset. CIT(A) observed that the proposition of the AO that both the deductions, u/s 54 and 54F cannot be given on the same property is bereft of merit as there is no such bar imposed statutorily in the Act. Both the sections only speak about investment in new property, a fact on which there is no dispute. There is no double claim on the same investment as the assessee has claimed the balance/spill over investment in the new flat as deduction u/s 54F. CIT(A) has rightly directed the AO to allow deduction u/s 54EC and also to compute eligible deduction u/s 54F on the balance investment in the flat/apartment and allow the same while computing long-term capital gains arising on the sale of impugned land capital asset. So far as the fresh claim u/s 54F is concerned, the objection of the AO that the assessee has not made such claim of deduction in the original return of income. Since various Courts have held that the appellate authorities have conferred upon the power to adjudicate and allow the legitimate claim, which was not claimed in the original return of income, the claim u/s 54F admitted by the ld. CIT(A) cannot be held as illegal. - Decided against revenue.
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