Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (1) TMI 837 - AT - Income TaxDisallowance of deduction claimed u/s. 54 - As per AO nature of the property sold is an industrial plot as is apparent from the contents of the sale deed - whether the assessee has transferred a residential house or not? - HELD THAT:- The parking area has been built in the basement floor covering 15000 sq.ft. having RCC framed structure, RCC retaining walls with Tremix flooring. The office area is built on the ground floor covering 18805 sq.ft. consisting of RCC framed structure, Aluminium windows, vitrified tile flooring. The residential area is on first floor with a covered area of 15304 sq.ft. having specification of masonry structure, granite flooring, ceramic tiles in the bathrooms, wooden doors and windows. If we look at the residential area, though it talks about masonry structure, granite flooring and ceramic tiles which is more a broad specification of a built up area which could possibly be used for residential purposes, however, at the same time, it does not have all the necessary attributes of a residential house in terms of bedrooms and kitchen facility. In any case, what the law contemplates is a transfer and sale of property which is being used for residential purposes. Therefore, what is essential is that the property should necessarily and solely be a residential house and used for residential purposes only. In the instant case where on an industrial plot of land, there is an office built up area on ground floor and so-called residential built-up area on the first floor, can it be said that what has been transferred is a residential house. To our mind, the answer to the same cannot be in affirmative and what has been transferred is an industrial plot of land having mixed constructed area consisting of office-cum-residential area. We, therefore, agree with the findings of the Ld. CIT(A) that the transacted property is an industrial plot and not a residential plot which is clearly borne out from the contents of the Sale Deed to which the assessee is himself a signatory and duly acknowledges the contents thereof. In the light of the same, subsequent oral evidence in form of an affidavit cannot be accepted and we affirm the findings of the Ld. CIT(A) that merely having Aadhar Card and Bank Account showing the same address do not accord the status of a residential house to the property under consideration and claim of the assessee cannot be accepted. We have also gone through the decision of Shri Navin Jolly Vs. ITO [2020 (6) TMI 514 - KARNATAKA HIGH COURT] and find that the facts of the said case are distinguishable from the facts of the case in hand and the legal proposition laid down therein, therefore, does not support the case of the assessee. The grounds of appeal raised by the assessee are dismissed.
|