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2022 (7) TMI 681 - AT - Income TaxDeduction u/s 54 - according to AO the property was purchased on 30.06.2006 and the assessee was in possession of the property for less than 3 years and therefore, the assessee is not eligible to claim LTCG - HELD THAT:- We find CIT (A) dismissed the appeal filed by the assessee, the reasons of which have already been reproduced in the preceding paragraph. It is the submission of the assessee that although the purchase of the property was registered on 30.06.2006, however, the assessee was in possession of the property on the basis of agreement of sale dated 5.10.2000 and the assessee was showing rental income from the said property in the return filed for the A.Ys 2005-06 & 2006-07 and therefore, the assessee was in possession of the property. It is the submission of assessee that the lower authorities have not verified the documents properly and therefore, the assessee should be given an opportunity to substantiate his case. We find some force in the above argument of assessee. The paper book filed by the assessee shows that the assessee filed return of income for the A.Ys 2005-06 & 2006-07 and for subsequent years and has disclosed the rental income from the said property. In our opinion, the matter requires a revisit to the file of the AO since various documents filed by the assessee including the copy of the return for the A.Ys 2005-06 & 2006-07 disclosing the rental income from the property in question has not been verified by the lower authorities - we deem it proper to restore the issue to the file of the AO with a direction to grant one more opportunity to the assessee to substantiate his case and decide the issue as per fact and law. The assessee is also hereby directed to appear before the Assessing Officer without seeking any adjournment under any pretext failing which the Assessing Officer is at liberty to pass appropriate order as per law including allowability of deduction u/s 54 - The grounds raised by the assessee are accordingly allowed for statistical purposes.
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