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2012 (12) TMI 239 - AT - Income TaxLong term capital gain - sale of share – Claim exemption u/s 54F in respect of LTCG – AO argued that assessee had not invested the capital gains in the construction of a residential house within the time frame stipulated u/s 54F - AO had reopened the assessment u/s 147 and issue notice u/s 148 – AO brought LTCG under tax. Re-opening of assessment u/s 147 – Held that:- AO was within his realm to reopen the assessment by issuance of a Notice u/s 148 of the Act to verify the claim of the assessee as to whether the assessee is entitled to claim exemption. Statement given by assessee that the original return filed on 27.7.2008 (sic) 27.7.2007 for the assessment year 2007-08 may be treated as return filed in response to your notice u/s 148. This assertion of the assessee makes it implicit that the assessee had not objected to whatsoever the reopening of the assessment during the reassessment proceedings. In favour of revenue Exemption u/s 54F – Long term capital gain - Held that:- As no residential house worth the name was constructed within the three years from the sale of the original asset as contemplated u/s 54F. Assessee was expected to construct a residential house not later than 18.1.2010 whereas when the AO made a spot inspection along with his Inspector as late as on 19.10.2010 and found in the presence of the assessee’s representative that the construction was just started and the very fact has been acknowledged by the assessee herself. She had accordingly filed a revised return for the AY 2010-11 admitting the said amount as her income for the said assessment year. Therefore rejecting the assessee’s claim for exemption u/s 54F. In favour of revenue
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