Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (9) TMI 698 - AT - Income TaxEntitlement to exemption u/s 54 - assessee contended that as the assessee had acquired the under construction flat within 3 years from the date of transfer of ancestral property thus she had rightly claimed exemption u/s 54 - Held that:- The assessee in this case had booked the under construction house and made the initial payment of ₹ 5 lakh to the developer before the expiry of stipulated period two years meant for the purchase of an already built up house and had further paid the entire capital gain money for the purchase of under construction house and the possession of the constructed house was also delivered to him within the stipulated period of 3 years, therefore the events in the intervening period are immaterial as the ultimate purpose of the beneficial provision is acquiring of a residential house by the assessee. The case of the assessee fits into the requirements of the beneficial provisions of section 54F read with the CBDT Circulars as noted above for treating the same as construction of the house, entitling her the benefit of exemption from tax. Our above view finds strength in the decision of the Hon'ble Karnataka High Court in the case of CIT & Anr. Vs. Sambandam Udaykumar [2012 (3) TMI 80 - KARNATAKA HIGH COURT]- Decided in favour of assessee. Assessee herself had withdrawn her claim before the AO as contented by DR - Held that:- As find from the record that the assessee before the AO had never stated that she had purchased an already built house. It was stated before the AO that she had purchased an underconstruction house. The date of allotment and that of the payments made and thereafter delivery of the possession of the house has never been disputed by the AO. Despite given all the explanation, the AO was not satisfied and therefore the assessee being a household lady and not aware of the provisions of the I.T. Act had withdrawn the claim, which seems to be under pressure. Even otherwise, the legal claim to which the assessee is otherwise entitled to, can not be denied to her when she had given sufficient explanation regarding the same before the AO, which, in our view, is quite convincing and justified. - Decided in favour of assessee.
|