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2015 (11) TMI 1436 - ITAT JAIPUR

2015 (11) TMI 1436 - ITAT JAIPUR - TMI - Entitlement to deduction U/s 54 - CIT(A) allowed claim - Whether the appellant assessee could make a claim for deduction other than by filing a revised return? - Held that:- 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. Before us also no evidence has been placed. The assessee’s return is belated. The Assessing Officer is not supposed to entertain the .....

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essing Officer is directed to give reasonable opportunity of being heard and consider the above observation made by this Bench. - Decided in favour of revenue for statistical purposes only. - ITA No. 1021/JP/2013 - Dated:- 9-10-2015 - SHRI T.R.MEENA, AM & SHRI LALIET KUMAR, JM For The Revenue : Shri O.P. Bhateja (Addl. CIT) For The Assessee : None (Date was noted) ORDER PER T.R. MEENA, A.M. This is an appeal filed by the revenue against the order dated 30/10/2013 of the learned C.I.T.(A)-1, .....

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(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 .....

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ter considering the assessee s reply and relying upon the Hon ble Supreme Court decision in the case of Collector, Land Acquisition Vs. Mst. Katiji & ors. (167 ITR 471) to condone the delay. The revenue has challenged this condonation and submitted that the reasons given by the ld CIT(A) are not sufficient to condone the delay in filing the appeal but we have considered the submissions made by the assessee as well as finding given by the ld CIT(A), the assessee s case is deserved to be condo .....

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siness. He filed 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 ₹ 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 as .....

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Assessing Officer again gave reasonable opportunity of being heard on the issue not allotting the deduction U/s 54 on capital gain of ₹ 37,07,560/- as investment made in the name of his wife not in the name of assessee himself. Show cause notice given by the Assessing Officer has been reproduced at page No. 2 and 3 of the assessment order. In response to this show cause notice, assessee replied vide letter dated 31/10/2011. The assessee s reply has also been reproduced on page 3 and 4 of t .....

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fore, he assessed the assessee s long term capital gain at Rs. 79,35,233/-. 4. Being aggrieved by the order of the Assessing Officer, the assessee carried the matter before the ld CIT(A), who had allowed the assessee s appeal by observing as under:- 6. I have 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 prop .....

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own name. On this ground the A.O. has declined to give the benefit U/s 54. This objection of the A.O. does not appear to be valid inasmuch as the only requirement for availing benefit U/s 54 is that the assessee should have purchased a residential house within the specified period. It is clear from the details furnished by the appellant that the new house has been purchased from the sale proceeds of the property old house, albeit in the name of his wife who cannot be paid to be a stranger. Thus .....

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esent case has not purchased the new house in the name of a stranger or somebody who is connected with him. He has purchased it only in the name of his wife. There is no dispute that the entire investment has come out of the sale proceeds and that there was no contribution from the assessee s wife. 6.2 The said decision was in respect of Sec. 54F which is in pari material with Sec. 54. The Hon ble High Court has, thus, clarified the legal position in this regard. It reached this conclusion after .....

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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 purpose of section 54. It has to be construed only as a residential house and the assessee is entitled to the benefit accordingly. In view of the clear legal position on this issue, as expounded by the Hon ble Delhi and Karnataka High Courts, the disallowance of the claim U/s .....

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ssing Officer issued notice for scrutiny, he claimed that the capital gain had been invested U/s 54 of the Act in the name of wife. The assessee was asked to furnish the details of investment made and claimed the deduction by the Assessing Officer during the assessment proceedings. However, no supporting evidence of property sold as well as property purchased in the name of wife has not been filed before the Assessing Officer. The ld CIT(A) had accepted the assessee s submission without remandin .....

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e 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 the name of his son and daughter in law. He .....

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ng amicus curie informed the Bench that the Hon ble Delhi High Court in the case of CIT Vs. Kamal Wahal 214 Taxman 287/86 DTR 37 (Del) has held that deduction U/s 54F allowed in the name of wife. Further the Hon ble Karnataka High Court in the case of DIT Vs. Mrs. Jennifer Bhide 75 DTR 402 (Kar.) has held that for availing exemption U/s 54 and 54EC, it is not necessary that purchase of property or investment in specified bond should be in the name of assessee only. In this case the investment in .....

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