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2019 (6) TMI 349 - AT - Income TaxEligible for deduction u/s. 54F - disallowing the construction cost on the presumption that the same is allowable at the time of calculating capital gains as cost of improvement - HELD THAT:- The assessee is eligible for deduction u/s. 54F and purchased the plots and constructed residential dwellings on those plots, we hereby hold that the assessee is eligible for the deduction and confirm the order of the CIT(A) to that extent. At the same time, we are not in support of the decision of the CIT(A) wherein the cost of the construction claimed by assessee has not been allowed and directed the same to be treated as cost of improvement. The decision of the CIT(A) is contrary to the provisions of section 54F (1), wherein the capital gains can be utilized for either construction or purchase of house. Since in this case, the amount has been utilized for the construction of the house, the amount is eligible for deduction u/s 54F in accordance with law. - Decided in favour of assessee.
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