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2016 (6) TMI 1075 - ITAT DELHIDisallowance of exemption claimed u/s. 54 - plot had been purchased on 21.05.2007, well before the date of sale of capital asset - assessee constructed a house on the plot, which was completed on 29.04.2009 - AO observed that assessee’s claim would amount providing him with a window of four years for meeting the conditions of section 54, which was not the intention of the provision - Held that:- The language of section 54 comprehends that the asset transferred should be a residential building, and the asset invested it should also be a residential building, and the investment should be made within the time specified therein. The time specified in this case, within one year before and two years after, is the period between 9.3.2007 and 9.3.2010. The investment which is eligible for deduction would therefore, be restricted to ₹ 17,50,674/- on account of plot, and ₹ 8,12,464/- on account of construction. After careful consideration of the letter and spirit of section 54, it was rightly held that the assessee is entitled to the exemption under section 54 of ₹ 25,63,138. Hence, the ld. CIT(A) gave the partial relief on this issue on the right footing. Therefore, we do not find any infirmity in the well reasoned order passed by the Ld. CIT(A) on the restriction of addition in dispute, hence, we uphold the finding of the ld. CIT(A) on this issue. - Decided against assessee Addition u/s. 40(a)(ia) - failure to deduct tax at source from professional fees paid - Held that:- CIT(A) has deleted the addition made by the AO u/s. 40(a)(ia) of the Act on the ground that assesse has deducted tax in all cases where the fees for professional services exceeded ₹ 20,000/-. Therefore, we do not find any infirmity in the well reasoned order passed by the Ld. CIT(A) on the addition in dispute and hence, we uphold the finding of the ld. CIT(A) on this issue - Decided against revenue
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