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2017 (10) TMI 1435 - AT - Income TaxDeduction u/s. 54F - complete the construction and occupy the same within the period of three years from the date of sale of original asset, if the construction had commenced within the period of three years - HELD THAT:- It is seen from the copy of the remand report sent by the ACIT, Noncorporate Circle (5)-1 to the CIT (A) dated 26.08.2016, which is in the paper book, that the ITI inspected “the property on 17.08.2016 and found that the said property is a land having a small portion in the middle of property constructed (about 1500 sq.ft.). This indicates that the size of house is just about 1500 sqft only in the sprawling land of 1 acres 25 cents. Though the assessee has made out a case for deduction u/s 54F, as per the ratios of the jurisdictional HC , however, a question arises that when the assessee has invested in 1.25 acres of land but constructed a house in the land just about 1500 sq.ft. only and claims the benefit of deduction u/s 54F on the entire investments in the 1.25 acres land and its compound wall etc, on the investment of how much land and buildings should she be given the benefit of deduction u/s 54F has not been examined by the lower authorities at all. In the case of Commissioner Of Income-Tax, Vs Zaibunnisa Begum [1984 (7) TMI 62 - ANDHRA PRADESH HIGH COURT] has laid the tests to be applied for the determination of the extent of land appurtenant to a building in the case involving sale of land and buildings, in sub para 18, supra, we are of the view that they could very well be applied in the case of purchase of land and construction of house as is involved in this case also We deem it fit to restore the matter for the determination of the extent of land appurtenant to a building (in this case the house) to the AO and direct him to re-determine the eligible deduction u/s 54F , afresh, on the lines on which the Honourable High Courts have laid the guidelines, supra, after giving adequate opportunity to the assessee. - Revenue’s appeal is treated as partly allowed for statistical purposes.
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