Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 1492 - AT - Income TaxExemption claimed u/s 54 - new house is purchased from borrowed funds - diversification of sources of the funds for purchase of new house - out of sale proceeds of old assets only ₹ 6 lacs was invested in the new asset and remaining ₹ 19 lacs was arranged as loan from ICICI Bank and therefore exemption u/s 54 to be restricted to ₹ 6 lacs and remaining were charged to tax as long term capital gain - HELD THAT:- Respectfully following the decision of CIT V Dr Parsicha [2009 (10) TMI 898 - BOMBAY HIGH COURT] as approved that sources of funds are irrelevant for claiming exemption u/s 54 of the act. If a new house is purchased from borrowed funds even then the deduction u/s 54 of the act is allowable We also hold that despite assessee has borrowed funds from ICICI bank for purchase of new House property , she is entitled to deduction u/s 54 of the income tax act on capital gain of ₹ 1268494/-. - Decided in favour of assessee.
|