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2020 (3) TMI 216 - ITAT HYDERABADComputation of long term capital gain - Claim of exemption u/s 54F - agreements relied upon by the assessee to say that he is only a 50% shareholder of 2.20 acres of land are both unregistered documents - HELD THAT:- Since the stamp papers used for recording the registered as well as unregistered documents are in seriatim, we are of the opinion that the said documents cannot be brushed aside. Since all the documents are not filed before the Tribunal, we are also not able to appreciate the contentions of the assessee. One of the contentions of the assessee is that he retained ₹ 82,50,000/- and returned the balance to one Mr. Suresh Reddy is also not brought to record. All these facts are to be verified by the authorities. We deem it fit and proper to remand the issue to the file of AO to consider all the documents filed by assessee and even if the agreements are not registered but since the stamp papers are found to be genuine, the transactions have to be accepted as correct. AO is accordingly directed to verify the same and re-adjudicate the issue in accordance with law. Exemption u/s 54F - assessee has been offering rental income from three residential properties due to which the AO and the CIT(A) have denied exemption u/s 54F - assessee’s contention that the said properties belong to the company which has constructed the houses but since they remained unsold and were let out and income was offered to tax in the hands of the assessee also needs verification by the AO. The AO has to examine as to when the flats were constructed and by whom, and if sold when the flats have been sold by the assessee or BNR Developers Pvt.Ltd. If it is found that assessee’s contention is correct that these flats were stock-in-trade of the company, and income has been offered to tax in the assessee’s hands and do not belong to assessee, then only assessee will be eligible to claim exemption u/s 54F of the Act. The AO is accordingly directed to verify assessee’s claim afresh in accordance with our directions as above.
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