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2015 (4) TMI 403 - AT - Income TaxEntitlement to exemption u/s 54F - computation of capital gain - It is submitted that the assessee purchased one plot which was divided in two plots having different numbers, those plots were sold to two different persons through separate sale deeds but the exemption u/s 54F has been allowed by the Department in respect of one plot only. - Held that:- The time of purchasing the new residential house for a sum of ₹ 21,10,500/-. The assessee was having only one residential house which was earlier purchased on 10.05.2008. Therefore, the assessee was entitled for exemption u/s 54F of the Act in respect of this house also as per the provisions contained in proviso (a)(i) to sub- section (1) of section 54F of the Act. The sale consideration of ₹ 47,42,255/- relating to Plot No. 11A was utilized by the assessee for purchasing the new house for a sum of ₹ 21,10,500/-, therefore, the exemption u/s 54F was allowable for a sum of ₹ 20,79,938/- (21,10,500 × 46,73,582 ÷ 47,42,255) and taxable Long Term Capital Gains worked out to ₹ 26,62,317/- (Rs. 47,42,255/- - ₹ 20,79,938/-). We, therefore, considering the totality of the facts as discussed here in above are of the view that the ld. CIT(A) was not justified in directing the AO to sustain the addition on account of Long Term Capital Gains for a sum of ₹ 46,63,324/-. Accordingly, we delete the addition confirmed by the ld. CIT(A). - Decided in favour of assessee Entitlement to deduction u/s 80C - in the absence of complete documentary evidences AO allowed the deduction in part - Held that:- Considering the submissions of both the parties and the material on record, we deem it appropriate to remand this issue back to the file of the AO for verification and if it is found that the assessee invested ₹ 88,341/- in LIC and the tuition fees of the children then the claim may be allowed in accordance with law.- Decided in favour of assessee for statistical purposes.
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