Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 251 - AT - Income TaxDeduction claimed under section 54 - Held that:- Merely because construction was not complete in all respect and it was not in a fit condition to be occupied within the stipulated period, would not disentitle the assessee from claiming the benefit under section 54 of the Act. The above facts, therefore, clearly prove that assessee had intention to purchase only plot because old structure and debris were removed by the owner and assessee wanted to raise the construction in the plot itself which was also raised partly. The income tax authority shall have to act on human probabilities by considering surrounding circumstances. In this circular No. 667, dated 18-10-1993, it is provided that aggregate cost of plot and construction should be considered for determining the quantum of deduction under section 54 of the Act. It would also support the case of the assessee for claim of deduction under section 54 of the Act. Thus, the assessee produced sufficient and reliable evidence on record to prove that practically the assessee purchased the plot and raised construction thereon for residential purposes. The assessee, therefore, would be entitled for deduction under section 54 of the Act. - Decided in favour of assessee.
|