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TMI Blog2015 (11) TMI 1436X X X X Extracts X X X X X X X X Extracts X X X X ..... re delay with reasonable cause and supporting evidence. (ii) Whether on the facts and in the circumstances of the case and in law the ld CIT(A) has erred in allowing deduction of Rs. 37,07,560/- U/s 54 of the IT Act, 1961. (iii) Whether on the facts and in the circumstances of the case and in law the ld CIT(A) has erred in holding that deduction U/s 54 is allowable even if the investment in house property was not made in the name of assessee. (iv) Whether on the facts and in the circumstances of the case and in law the ld CIT(A) has erred in holding that deduction U/s 54 is allowable in respect of entire investment made in six flats. This provision allows the deduction in respect of one residential house property only." 2. The first gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his return on 31/3/2010 at Rs. 1,48,570/-. The case was scrutinized U/s 143(3) of the Act. The Assessing Officer got AIR information and found that the assessee had sold immovable property for Rs. 50,13,550/- during the year under consideration. The Assessing Officer asked to furnish the details of particulars of property sold alongwith copy of the sale deed, which was submitted by the assessee. On perusal of the sale deed, it was noticed by the Assessing Officer that the assessee had sold the property situated at A-28/4 (New No. 28/14) for a sale consideration of Rs. 91,00,000/-, however, he had not disclosed any capital gain in his original return of income filed on 31/3/2010. Further during the course of assessment proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e considered facts of the case. A perusal of the assessment order shows that the A.O. has disallowed the claim of exemption U/s 54 on the ground that the appellant had not invested the capital gains arising due to sale of his residential property in a residential house in his own name. Since the proceeds were invested in residential house purchased in the name of his wife Smt. Meera Devi, the A.O. held that the appellant was not entitled to any relief U/s 54. 6.1 It is, however, noted that the sale proceeds of the residential house have been invested in another residential house. Even the A.O. has not disputed this fact. The only objection of the A.O. is that the house was purchased in the name of the appellant's wife and not in his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conclusion after going through a number of decisions, including those of Bombay High Court (173 Taxman 311), and the Delhi High Court (203 Taxman 289). Apart from this, as held by the Hon'ble Karnataka High Court in the case of Smt. K.G. Rukminiamma (supra), investment of the capital gain by the appellant in 6 flats in the same building would also not affect this claim. In this case (Smt. K.G. Rukminiamma), the Hon'ble High Court had observed as under:- "All the four flats are situate in a residential building. These four residential flats constitute "a residential house" for the purpose of section 54. Profit on sale of property is used for residence. The four residential flats cannot be construed as four residential houses for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erties during the year under consideration or before or after sale of the impugned immovable property. As per Section 54, the assessee has to deposit the capital gain in capital gain scheme with nationalized bank. Therefore, these aspects had not been considered by the ld CIT(A) before allowing the appeal. He further relied on the decision of Hon'ble Rajasthan High Court in the case of Kalya Vs. CIT (2012) 251 CTR 174 (Raj) wherein the Hon'ble High Court has held that transfer of land used for agricultural land whether word 'assessee' used in Income Tax Act needs to be given a legal interpretation and not a liberal interpretation and consequently, an assessee would not be entitled to get exemption U/s 54B for land purchased by him in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in case of property purchased jointly in the name of assessee with his wife. It is argued that the Hon'ble High Court had decided this issue by following the various High Court's decisions against the assessee and for the assessee, therefore when two opinions has been formed by the Hon'ble High Court, the assessee's favourable opinion is to be applied by the court by relying on the decision of Hon'ble Supreme Court in the case of CIT Vs. Vegetable Products Ltd. (1973) 88 ITR 192 (SC) 7. We have heard the rival contentions of both the parties and perused the material available on record. The ld CIT(A) has not provided any opportunity to the Assessing Officer as no details were submitted by the assessee during the assessment proceedings. Be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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