TMI Blog2015 (1) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... erly verifying the assessee’s contention, the Assessing Officer was not justified in rejecting the claim of deduction u/s 54F of the Act on presumptions and surmises. On a specific query made by the bench, the assessee had produced the municipal tax receipt of the house in question, investment for which was claimed as deduction u/s 54F of the Act. On a perusal of the said receipt dated 24/12/2013 prima facie it appears that a house exists in door No.15-6-190/1/J, against which the assessee has claimed deduction/s 54F of the Act. When the Assessing Officer does not dispute the fact that the assessee has derived capital gains from sale of flat, then the fact that this was utilised for construction of the house cannot be disbelieved, when n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstruction of a house property. On the basis of information that the assessee along with three others had given plot of 1000 square yards situated at D.No.12-1-923/5, Mallepally, Hyderabad for development by entering into a development agreement cum GPA, reopened the assessment by issuing a notice u/s 148 of the Act. During the assessment proceedings, the Assessing Officer called upon the assessee to produce evidence such as municipal approval, date of commencement, completion of cost of construction etc., to prove his claim of deduction u/s 54F of the Act. Though the assessee submitted his explanation giving details of expenditure incurred on construction, but the Assessing Officer disbelieved it by holding that the assessee has not submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s claim. It is well settled law that onus is on the assessee to submit complete evidences before the Assessing Officer before claiming any deduction. To strengthen this view reliance is placed on e decision of Hon ble Supreme Court in cases of CIT vs. Calcutta Agency Ld. 19 ITR 1991, where it is held that the onus is on the assessee to prove necessary facts in order to claim any deduction. Similarly, Hon ble A.P. High Court in the case of CIT vs. Transporting Corporation of India Ltd., 256 ITR 701 and in the case of CIT vs. Imerial Chemicals Industries India Pvt. Ltd 74 ITR 17 has held that onus is on the assessee company to prove the veracity of the expenses claimed by it. In the present case the assessee has failed to submit any evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders of the CIT (A) as well as Assessing Officer submitted that when the assessee failed to furnish any evidence to substantiate its claim that it has actually invested in construction of house, the disallowance of deduction claimed u/s 54F of the Act was justified. 4. We have heard contentions of the parties and perused the materials on record. The only issue before us, is whether the assessee has invested the capital gains in construction of new house property so as to claim deduction u/s 54F of the Act. On perusal of the assessee s letters dated 26-12-2007 and 28-12-2007 placed at pages 14 and 15 of the paper book submitted before us do indicate that the assessee has replied to all the queries made by the Assessing Officer. The ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o.15-6-190/1/J, against which the assessee has claimed deduction/s 54F of the Act. When the Assessing Officer does not dispute the fact that the assessee has derived capital gains from sale of flat, then the fact that this was utilised for construction of the house cannot be disbelieved, when no contrary material has been brought on record to show that amount was utilised in any other manner. Since, the aforesaid municipal tax receipt was not produced either before the Assessing Officer or before the CIT (A), we direct the Assessing Officer to verify the original municipal receipt and allow the claim u/s 54F of the Act. So far as addition of short term capital gain of ₹ 1,67,000/- is concerned, since the assessee himself has admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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