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2018 (8) TMI 1124 - AT - Income TaxDeduction u/s 54 - purchase of new residential house - AO disallowed the claim by observing that the assessee has not utilized capital gains for purchase of new residential house contending that the new residential house has been purchased out of own sources i.e. savings from saving bank account and bank loans. - Held that:- the assessee is entitled to exemption under section 54 even though for the construction of the new house, the amount that was received by way of sale of his old property as such was not utilized. It was held by the Kerala High Court [1999 (9) TMI 955 - KERALA HIGH COURT] that no provision is made by the statue that the assessee should utilize the amount which he obtained by way of sale consideration for the purpose of meeting the cost of the new asset. Entitlement of exemption under section 54 relates to the cost of acquisition of a new estate in the nature of house property for the purpose of his own residence within the specified period. - assessee has met with all the conditions stipulated under section 54(1) - Deduction allowed - Decided in favor of assessee.
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