Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (3) TMI 1140 - AT - Income TaxExemption u/s 54F - Denial of claim as assessee has used a colourable device to claim exemption u/s. 54F - as per revenue there is artificial transfer of one house by way of gift deed just prior to the effective date - HELD THAT:- In the present case, as seen assessee was engaged in the artificial transfer of one house by way of gift deed just prior to the effective date - As u/s 23 and 24 of the Indian Contract Act, 1872, when the object is to defeat any provisions of law, and when consideration is of such nature that, if permitted, it would defeat the provisions of any law, the contract will be void. In the present case, per se gift deed was not executed on account of natural love and affection but was executed by the assessee to artificially avail the deduction u/s 54F. We cannot countenance the assessee's conduct and allow the assessee to misuse and exploit the beneficial provisions of section 54F - Undoubtedly, as per the assessee, he is an individual having a high net worth and paying huge taxes. The assessee artificially created a gift deed of the property with a view to fit into the provisions of section 54F, so that he can claim the deduction against the sale of capital asset. The act of the assessee was prearranged step for execution, and it served no commercial purpose but was motivated to avoid paying taxes. The orders passed by the assessing officer and ld.CIT(A) were within the four corners of law and do not require any interference. Appeal of the assessee is dismissed.
|