2023 (5) TMI 1119 - SCH - Income Tax

Exemption/ deduction u/s 54 - Purchase of land with superstructure - After demolishing the existing superstructure the appellant assessee constructed a residential house - as per HC 2018 (8) TMI 864 - MADRAS HIGH COURT it is not a requisite of Section 54 that construction could not have commenced prior to the date of transfer of the asset resulting in capital gain. If the amount of capital gain is greater than the cost of the new house the difference between the amount of capital gain and the cost of the new asset is to be charged u/s 45 as the income of the previous year - HELD THAT - As stated that the tax amount involved in the present case is less than Rs. 2 crores and in view of the Circular No. 17 of 2019 dated 08.08.2019 the present petition need not be decided due to low tax effect. We dispose of the present Special Leave Petition leaving the question of law open. Pending application(s) if any shall stand disposed of.

Summary

The Supreme Court of India in 2023 (5) TMI 1119 - SC Order, with Hon'ble Mr. Justice Sanjiv Khanna and Hon'ble Mr. Justice M.M. Sundresh, decided a case where the tax amount involved was less than Rs. 2 crores. Referring to Circular No. 17 of 2019 dated 08.08.2019, the petition was disposed of due to low tax effect. The question of law remains open, and any pending applications were disposed of.