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2022 (9) TMI 1315 - AT - Income TaxDeduction u/s 54F - Capital gains Computation of sale of residential flat ad gold ornament - assessee and her son sold jointly owned residential flat - Whether sale consideration credited to the assessee's bank account should not be the basis of addition of capital gains in her hand? - addition on account of error in filing return of income be deleted and deduction u/s 54F be granted in respect of gains arising from sale of gold ornaments - HELD THAT:- From the perusal of the record, we find that there is no attempt on the part of the assessee or her son to rectify the return which is claimed to have been filed with incorrect details - since the AO is common to both the assessee and her son, therefore, in all fairness AO has not brought any excess amount to tax in the hands of the assessee's son but has accepted the amount offered for taxation in his return. AO has accordingly brought to tax the amount which was credited in assessee's bank account, for the purpose of computation of capital gains. We are of the considered view that if the plea of the assessee is accepted then it will result in non-taxation of the entire amount of sale consideration as in the case of assessee's son amount of sale consideration disclosed in his return of income, has already been accepted by the Department and no direction can be passed to enhance son's income in a concluded assessment. Since, it is the claim of the assessee that the entire sale consideration has further been invested by the assessee and her son in another residential flat at Khar, therefore, we deem it appropriate to direct the AO to examine as to how much of the amount of sale consideration received by the assessee has been invested in a new residential property for the purpose of claiming exemption u/s 54 and to grant the exemption to the assessee under the said section if the other conditions laid down therein are satisfied. Sale consideration on sale of gold ornaments, the assessee had claimed exemption u/s 54F - The lower authorities denied the claim of the assessee in absence of any documentary proof of having made investment as per requirement of section 54F. In the present case, AR referred to sale invoices of 2 jewellers, forming part to which jewellery weighing about 541.560 gms was sold during the relevant financial year for a total consideration. The sale consideration has duly been credited through cheque on 26/11/2013 in the bank account of the assessee maintained with Bank of India, forming part of the paper book - Since, the lower authorities denied the claim of the assessee merely on the basis that no documentary evidence has been furnished and there is no allegation regarding the genuineness of the transaction, therefore, we deem it appropriate to direct the AO to examine as to how much of the amount of sale consideration received by the assessee from sale of gold ornaments has been invested in a new residential property for the purpose of claiming exemption under section 54F of the Act and to grant the exemption to the assessee under the said section if the other conditions laid down therein are satisfied. Addition made merely on the basis of declaration made in the ITR- typographical error - In the present case, we find that the Revenue has not disputed the sale consideration of the residential property at Bandra and has computed capital gains in the hands of the assessee by considering amount credited in her bank account. The sale consideration of gold ornaments has also been reasonably satisfied - In the present case, there is neither any allegation that the amount has been received by the assessee or credited in her bank account nor any material has been brought on record in this regard. Merely because the assessee could not explain the balance amount as mention in her computation of income and return, the same was added to the total income of the assessee by stating the same as income from other sources. We find no basis in sustaining the addition which appears to be merely a typographical error on the part of the assessee, while filing the return of income. Accordingly, we direct the AO to delete the addition made to the total income of the assessee. As a result, ground raised in assessee's appeal is allowed
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