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2024 (12) TMI 1163 - AT - Income TaxDeduction u/s 54F - no evidence for construction was filed no evidence of ownership of land on which construction was claimed to be made was filed - Assessee initially submitted that house was constructed in the name of his son but subsequently it was contended that it was constructed in his name - HELD THAT -Valuation of the house property constructed by assessee which shows that construction was done between the period of Jan 2013 to July 2015 with value of Rs. 1, 25, 20, 000/-. Aksh Sizra and Jamabandi of the ancestral land showing the ownership of assessee. Copy of Certificate issued by Councillor Gurgaon Copy of cash flow statement of assessee and reply filed by the assessee mentions the residential house on ancestral land for a sum of Rs. 1, 25, 20, 000/- was constructed in 3 years. The house situated in Lal Dora of the village Mohammedpur Jharsa Gurgaon. Nothing was brought on record by AO to disregard the above evidence produced by assessee. It is a material fact that assessee had sold agricultural land and received Rs. 4, 31, 25, 000/- by selling agricultural land and sufficient fund. Assessee deserves benefit of section 54F of the Act therefore the findings of learned CIT(A) deserves to be set aside. Disallowance of exemption u/s 54B - Details of purchase of land by assessee for Rs. 3, 08, 33, 650/- is at page 24 of the paper book. Sale deed agreements executed by assessee for purchase of agricultural land. The assessee claims to be illiterate and was not aware of the income tax laws and was suffering from serious diseases since 2012. Before learned AO assessee submitted that land was purchased in the name of wife to save stamp duty. In view of the above material facts and well settled principle of law the assessee having purchased agricultural land was eligible for deduction under section 54B of the Act. Therefore the findings of learned CIT(A) denying benefit of deduction under section 54F of the Act is set aside. Unexplained cash credit on account of unsecured loan received by assessee from his brother Shri Brahm Singh assessee filed copy of affidavit of Brahm Singh and cash flow statement - Agreement of sale dated 26.12.2012. In view of the above said affidavit cash flow statement and agreement to sale it is evident that Shri Brahm Singh had paid Rs. 40, 00, 000/- on behalf of assessee for purchase of land as same was outstanding as on 31.03.2023. Assessee had made payment on behalf of Shri Brahm Singh for purchase of another land and thus squared off the transaction. In light of above facts the addition consider as unexplained cash credit on account of unsecured land deserves to be deleted.
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