Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 948 - AT - Income TaxClaim of deduction u/s 54 - assessee has invested the sale proceeds in a commercial property - Held that:- The building was constructed as a residential unit and even the report of the Inspector clarified that it was a “residential vacant floor”. The occupation certificate dated 19/09/2009, issued by the BMC also clarified that it was a residential building. Even the report of SE dated 24/12/2010 and internal note/report dated 05/01/2010 clarified that the first floor was occupied by the assessee and there was no office therein and these documents are prior to passing the assessment order, therefore, cannot be said to be created document. Even, on 13/01/2011, the assessee got a single water connection for the residential unit. The assessee also paid the property tax of ₹ 1 lakh to the BMC as a residential property and vide letter dated 11/04/2011, the assessee wrote a letter to the Assessor and Collector, BMC with a request to assess the property as a residential from wrongly assessed as commercial. In response to an RTI application dated 21/11/2011, the BMC furnished the inter note dated 11/01/2011 and 21/04/2011, wherein, it was mentioned that the plot was assessed as residential rateable value from 01/01/2008 and the building plan was sanctioned as “residential building” vide note dated 29/09/2009. Before the Ld. Commissioner of Income Tax (Appeal), the assessee also enclosed copy of receipt dated 27/04/2011 for transfer of residential gas Cylinder at the new address. All these documents were made part of the paper book before the First Appellate Authority and also before us. The small units were converted in a single unit (as mentioned earlier the total area of all units is 1935 Sq. Ft.), therefore, in our considered opinion, it is a single unit. It is not the case that all the six flats are having abnormally bigger areas and simply to get the benefit u/s 54 of the Act, a story was concocted by the assessee. The evidences filed by the assessee clearly indicates that small units on the same floor were converted into one habitable unit for a peaceful/comfortable living, thus, the assessee cannot be denied the benefit of exemption. - Decided in favour of assessee
|