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2016 (4) TMI 867 - AT - Income TaxDeduction u/s. 54F - Held that:- In the present case, assessee has purchased a semi-finished house and completed construction before the three years period as prescribed. Revenue has not cited or placed on record any contrary judgment. Therefore, respectfully following the ratio laid down by the Hon'ble Karnataka High Court in the case of CIT Vs. K. Ramachandra Rao [2015 (4) TMI 620 - KARNATAKA HIGH COURT], we direct the AO to allow the capital gains exemption as claimed. Claim of cost of acquisition - Held that:- AO as stated earlier has not considered the cost of acquisition or indexation and brought the entire sale consideration to tax. Before the Ld. CIT(A), additional evidence in the form of purchase deeds were filed. Ld. CIT(A) failed to adjudicate the ground. We notice that assessee is entitled to cost of indexation as claimed as a deduction while computing the capital gains. Even otherwise, since assessee’s investment in new house is more than the sale consideration, the ground may become academic. However, we direct the AO to allow cost of indexation as claimed and arrive at the correct capital gains and allow deduction u/s. 54F/54 thereon.
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