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2014 (12) TMI 208 - AT - Income TaxRejection of claim of exemption u/s 54 – Purchase of new residential property against payment in installments - A.O. noted that the assessee has made payment of ₹ 5,07,825/- only within two years from the date of transfer of property for acquisition which cannot be treated as substantial portion of ₹ 35,72,240/- - assessee submitted that he has paid substantial amount to the builder before the completion of period of 3 years from the date of sale of original asset i.e. before 24-10-2010 and the flat was in his possession at the time of hearing. - Recently delivered judgment by SC relied upon by assessee - Held that:- the assessee has claimed the deduction u/s.54F of the I.T. Act whereas the Assessing Officer has proceeded with the provisions of section 54 of the I.T Act. The assessee has received an amount being her share in the joint property sold on 25-10-2007 - assessee kept the money in her savings account and did not deposit the money in the specified capital gain account scheme within the stipulated time – AO was of the view that since it has not paid substantial amount within a period of 2 years from the date of transfer of property for acquisition of the residential flat nor deposited the money in the specified capital gain account with any specified bank and the money was deposited in her saving bank account which was upheld by the CIT(A) – assessee entered into an agreement for purchase of flat on 14-10-2009 - the details of payment made towards the purchase flat are already given – Assessee relied upon the decision delivered by SC in Sh. Sanjeev Lal Etc. Versus Commissioner of Income Tax & Another [2014 (7) TMI 99 - SUPREME COURT] - However, it is a very recent decision and was neither available before the AO nor before the CIT(A) - Revenue authorities had no opportunity to go through the ratio laid down in the said case, vis-a-vis the facts of the case of the assessee – thus, the matter is remitted back to the AO with a direction to decide the issue in the light of the decision of the SC – Decided in favour of assessee.
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