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2021 (7) TMI 553 - AT - Income TaxExemption u/s 54F - deduction was denied mainly on the ground that the assessee had owned more than one residential house as on the date of purchase of new Asset - claim of the assessee was denied firstly on the reason that the assessee has not constructed residential house at Kattigenahalli, Bengaluru and the payment said to be made towards construction was met by assessee by cash - HELD THAT:- On enquiry by the Inspector of the Department, it was revealed that the said property consists of ground floor, first floor and second floor and it was a commercial building evident from page No.24 of the written submissions which is not countered by the learned DR and it was not a residential building and AO in his remand report admitted that assessee did not own more than one house as on date of transfer of property survey No.149, Bokkasagara Village, Anekal Taluk. Therefore, on this count exemption under section 54F of the Act cannot be denied. Payment made towards construction of the house - As a proof of this, in support of this expenditure, assessee filed payment vouchers before us - These evidences were also filed before the lower authorities. The lower authorities have brushed it aside on the reason that these are self-made vouchers or are not having sufficient details regarding the various expenditure incurred by the assessee. In our opinion, without examining the parties concerned, lower authorities have precluded in rejecting the evidence submitted by assessee in the form of bills and vouchers. Being so, the assessee’s property No.9 at 100 Ft. Road, BTM Layout, Bengaluru, cannot be considered as a residential property and also expenditure incurred by assessee towards construction of new residential property cannot be brushed aside - evidence brought by assessee in the form of Khatha show that originally at the time of acquisition of property, there was only 500 sq. ft. of built-up area at 3646/8/8/1 as per Khatha extracted at pages 22, 23 of written submissions, the construct area in property bearing No. 8/1, Kattigenahalli Village, Bengaluru, was 500 sq. ft. - as per Khatha dated 23.12.2014 issued by BBMP, the constructed area in the said property was at 2500 sq.ft. Thus, it means that there is addition construction between 14.06.2013 to 23.12.2014 and also supported by the bills and vouchers submitted by the assessee and due consideration to be given to these evidences - we are inclined to grant deduction under section 54F of the Act as claimed by the assessee. - Decided in favour of assessee.
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