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2015 (9) TMI 899 - AT - Income TaxReopening of assessment - assessee has not complied with the provisions of section 54B of the Act for claiming deduction - whether reasons to believe do not survive? - CIT(A) deleted the disallowance - Held that:- When the assessee is showing income from business and profession in the return of income either negative or positive, then obviously, the assessee falls within the ambit of non-corporate tax payers which includes partners of the firm and hence, date of filing of return applicable for the assessee would be 31.10.06. We may further point out that when admittedly and undisputedly, the assessee deposited impugned amount of ₹ 32 lakh in the capital gains account scheme on 28.10.06 before the due date of filing of return i.e. 31.10.06, then assessee is eligible for deduction u/s 54B of the Act in this regard. We, therefore, are of the opinion that the view taken by the CIT(A) is sustainable and as per provisions of the Act and we are unable to see any infirmity, perversity or any other valid reason to interfere with the same. Accordingly, sole ground of the revenue being devoid of merits is dismissed. - Decided in favour of assessee. Declining the claim u/ s 54F - Held that:- We are inclined to hold that the issue raised by the assessee is squarely covered in favour of the assessee by the judgment of Hon’ble Madras High Court in the case of Dr. P.K. Vasnathi Rangarajan vs CIT (2012 (7) TMI 563 - MADRAS HIGH COURT) and the assessee cannot be denied exemption u/s 54F of the Act merely because he was the holder of 50% of the share jointly with Smt. Saroj Aggarwal of the property situated at Siddarth Extension Residential Scheme and the AO was not justified in denying claim of the assessee u/s 54 of the Act and the first appellate authority was incorrect in upholding the action of the AO on this issue. Finally in view of our foregoing discussion, we dismiss the action of the AO as well as impugned order pertaining to the claim of deduction u/s 54F of the Act and the AO is directed to allow the same to the assessee. - Decided in favour of assessee. Addition for 'income from house property' - Held that:- From careful reading of the impugned assessment order and order of the CIT(A), we are unable to see any fact or evidence which can substantiate that the assessee actually earned rental income from the said property during the previous year, even we are unable to see any name or entity to whom the said property was rented by the assessee. In this situation, addition made by the AO on the basis of surmises and conjectures cannot be held as sustainable and the view taken by the CIT(A) is mechanical and we decline to accept the same. Accordingly, addition made by the AO is directed to be deleted - Decided in favour of assessee.
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