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2020 (1) TMI 310 - AT - Income TaxDeduction claimed u/s 54 - Proof of construction in the village - assessee has claimed the deduction stating that the assessee along with his wife has jointly constructed a house at Kotada, Jadodar, Bhuj in Gujarat state - HELD THAT:- In the instant case, the assessee has sold the property consisting of site and Madras terraced building located at Sy.No.129, Block No.4, Plot No.21 & 22 with D.No.32-37-20 within the Greater Visakhapatnam Municipal Corporation limits, Visakhapatnam for a consideration of ₹ 9,00,000/- along his wife. The total sale consideration of the assessee and his wife was ₹ 18,00,000/- which was received jointly by them and credited in the bank accounts as evidenced from the assessment order. The assessee submitted that the sum of ₹ 18 lakhs was used for construction and accordingly the said amounts were withdrawn from the bank account on various dates. The assessee submitted a certificate from Gram Panchayat confirming the construction of house property on the site owned by them earlier. The AO without making any enquiries disbelieved the claim of the assessee and disallowed the deduction claimed by the assessee which is unjustified according to our view. As per the certificate, the house was constructed during the period 2007-08 and no approval was necessary in the village. The Sarpanch has signed the letter duly signed and stamped the certificate. If the AO did not believe the certificate or considered the same as bogus, the AO ought to have made the enquiries and disproved the genuineness of the certificate issued by the Gram Panchayat. Since the assessee has furnished the required details and constructed the small house at the village, where no approvals or permissions are necessary, we do not find any reason to disallow the deduction claimed by the assessee u/s 54F. Accordingly, we set aside the orders of the Ld.CIT(A) and delete the addition made by the AO. - Appeal of the assessee is allowed
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