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2015 (12) TMI 704 - AT - Income TaxClaim of deduction u/s 54F - AO denied the claim of deduction on the ground that the assessee owned more than one residential house on the date of sale of the original asset - Held that:- As regards the denial of claim u/s 54F on the ground that the assessee did not deposit the sale proceeds in the capital gain account as per the provisions of subsec.( 4) of sec.54F, we note that this issue is now settled by the decisions of Fatima Bai vs. ITO reported in (2008 (10) TMI 563 - KARNATAKA HIGH COURT) and in the case of Smt.Vrinda P.Issac (2012 (8) TMI 608 - KARNATAKA HIGH COURT) wherein held if the assessee has utilised the entire capital gain by purchase of a house or construction of the new house within the stipulated period, the benefit of sec.54F cannot be denied.Accordingly, if the assessee has constructed the new house and utilised the sale proceeds and capital gain within the period of limitation as provided u/s 54F, then the claim of the assessee u/s 54F cannot be denied. As regards the objections of the authorities below in respect of the assessee owning more than two residential houses and utilisation of the sale proceeds for construction of new house, we find that the assessee has produced relevant record in support of the claim along with affidavit. Prima facie it appears that the residential house at Kilpauk, Chennai was demolished on 18/5/2007 and thereafter, construction was completed by 2/9/2009 as per the certificate issued by the Corporation of Chennai. Further, the assessee has also produced the certificate of Chartered Engineer, confirmation letter issued by the demolisher of the property as well as bank account details along with details of the contractor who has carried out the construction work. Since these evidences were not examined by the authorities below, therefore, in the facts and circumstances of the case as well as in the interest of justice, we admit the additional evidence and set aside the issue to the record of the AO to verify the additional evidence filed by the assessee in support of the claim and then decide the issue as per law and in the light of the observations made by us. - Decided in favour of assessee for statistical purposes.
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