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2022 (4) TMI 1128 - AT - Income TaxDisallowance of exemption u/s. 54F claimed on long term capital gains on sale of residential property - As per AO property sold is not residential house and assessee had not declined income under the head ‘income from house property’ accordingly, the AO held that the assessee is not liable for exemption u/s 54F - HELD THAT:- In support of its contention, the assessee filed certain details, such as, copy of the electricity bill of June 2012 and September & October 2012 and copy of draft and receipt, payment of scheme, charges and the receipt dated 21st July, 2011 had also filed. Building material purchase bill dated 12.04.2010 and other relevant documents before us by way of a paper book stating that these documents are vital for disposing of appeal of the assessee. As claim of the assessee has been rejected by the lower authorities for the ground that assessee has not started building construction activity within three years. The benefit of Section 54F of the Act cannot be given. As the assessee could not file all the relevant details before the lower authorities at our direction assessee could file certain directions which are important for adjudication of the case. In our considered opinion and in the interest of justice, we give one more chance to the assessee and set aside the matter back to the file of the AO with the direction to go through the paper book filed by the assessee before us and thereafter decide the matter as per law. Disallowance of interest - CIT(A) confirmed the action of the AO as assessee could not submit any documents/evidences whether amount was spent for purchase of land or building material etc.- HELD THAT:- In this case assessee has taken loan for business purpose as interest has been paid on unsecured loans in a proprietary firm of the assessee. Since, the amount has not been used for construction of house, therefore, same cannot be allowed and we do not find any infirmity in the order passed by the lower authorities and therefore, we confirm the action of the lower authorities.
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