Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 173 - AT - Income TaxDeduction u/s 54F - disallowing 50% of labour expense which resulted in reducing the construction value of the residential property - Held that:- As gone through the material as per record and observed that the existence of residential house was evident from the construction of room, bathroom, water tank, boundary wall etc. There was electricity connection in the house with meter near the entry of constructed house. We have also observed that existence of these facts were not disproved by the assessing officer as he has not referred the matter to the valuation officer. After taking into consideration the specific facts of this case we are of the view that for lack of some facilities it is not appropriate to categorized the aforesaid house as non-residential house. Inter alia we are inclined with the decision of the CIT(A) that the assessee has failed to fully substantiate the claim of labour expenses by not furnishing the relevant evidences as elaborated in the findings of the Ld.CIT(A). Therefore, we do not find any error in the findings of the Ld.CIT(A) of disallowing 50% of labour expense (Rs 11,50,000/- ) which resulted in reducing the construction value of the residential property to ₹ 54,50,000/- and restricting the deduction u/s 54F of the Act to ₹ 52,63,756/- on the basis of 1/6th share of the assessee. Therefore, the appeal of the revenue is dismissed. Invoking provision of section 94(7) on account of disallowance of loss relating to short term loss on sale of Mutual Funds we find that the assessee failed to controvert the applicability the provision of section 94(7) to the fact of the case of the assessee, therefore, the cross objection filed by the assessee on this issue is rejected Also dismissed in view of the applicability of provision of section 2(22)(e) for accepting loan from the company in which he was a director and beneficial owner of holding 20% shares
|