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2017 (11) TMI 379 - AT - Income TaxAddition of long term capital gain - assessee declared long term capital gain as nil - cost of construction computation - Held that:- The assessee has referred to details of various loans from the bank at different time however, some of the loans are in the joint name of the assessee and his family members showing the transactions are of withdrawal and deposit in cash. Therefore the bank statement itself cannot give a definite idea of purpose and used of the funds withdrawn in small amount of cash by the assessee and his family members. As regards the payments made to the two parties namely Bansal Trader and Agarwal Traders in the absence of further details and explanations whether these two parties are dealing with the construction activity or supply of construction material cannot be said that the payments were made for the purpose of construction of the house. Hence, I find that this issue requires a proper verification and examination by considering the valuation report of the DVO as well as the valuation report, if any, to be filed by the assessee from the registered valuer. Hence, this issue is set aside to the record of the Assessing Officer for adjudication of the same in light of the above observations. Denying the claim deduction u/s 54 - investment made by the assessee in the new residential houses in the name of his wife and claim of exemption under section 54 against the acquisition of these two houses - Claim of deduction u/s 54 available to more than one houses - Held that:- Mere fact of the assessee purchased of new house in the name of his wife would not disentitle the assessee for claiming the benefit u/s 54 when the other conditions as provided u/s 54 are satisfied. Following the decision of Hon’ble Punjab and Haryana High Court in case of Pawan Arya Vs. CIT (2010 (12) TMI 44 - PUNJAB AND HARYANA HIGH COURT) hold that the assessee is entitled for the claim of section 54 of the Act only in respect of one house at the choice of the assessee. Disallowances claim of interest u/s 48 of the Act as well as under 24(b) - Held that:- This issue is directly connected with the claim of the assessee regarding the loan availed by the assessee and his family members are used for the purpose of construction of the house. As have already set aside the issue of cost of construction of the house as well as use of the barrowed fund for the purpose of construction of the house to the record of AO. Therefore, this ground of the assessee’s appeal is consequential to outcome of the issue already set aside to the record of the assessing officer. Accordingly, in the facts and circumstances of the case I set aside this issue to the record of the Assessing Officer for consideration, exemption and adjudication along with the other issue remitted to the record of the Assessing Officer. Appeal of the assessee is partly allowed.
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