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2019 (11) TMI 78 - AT - Income TaxExemption u/s 54F - purchase of residential land - Nursing Home was constructed in addition to the residential house - benefit of indexation in computing capital gains - HELD THAT:- Admittedly, assessee constructed commercial property being nursing home, on the land purchased from sale proceeds, and residential house, which has been claimed as exemption u/s 54F. Section 54F is very clear in respect of exemption being available to assessee, in respect of either purchase of residential property or construction of residential property within the period of limitation prescribed therein. Do not find any force in argument advanced by Ld.AR regarding granting of exemption u/s 54F in respect of entire land on which construction in respect of residential house as well as commercial building being nursing home have been done. It is observed that Ld.AO while computing capital gain, allowed ₹ 33,41,839/- as cost of land appurtenant to residential house for which there is no basis.CIT(A) mentions land on which residential house constructed amounts to ₹ 586.96 sq.mts, out of total land 2543.25sq.mts. Both AO and CIT(A) failed to compute vacant land that may be annexed to residential house. We therefore, direct Ld.AO to consider all these aspects for purpose of computing exemption u/s 54F and capital gains payable by assessee. Needless to say that assessee is eligible for benefit of indexation in computing capital gains. - Grounds raised by assessee stands allowed for statistical purposes.
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