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Sunil Kumar Saha Versus Income Tax Officer, Ward-55 (1) , Kolkata

2015 (5) TMI 986 - ITAT KOLKATA

Disallowance of exemption under section 54EC - Held that:- In the present case, we noted that the assessee sold his house property on 15.01.2006 for a considerat ion of ₹ 23,00,000/- while as per the provisions of sect ion 50C, the consideration as per the stamp valuation was ₹ 24,65,600/-. The indexed cost of acquisition of the property came to ₹ 13,57,921/-. The assessee computed the capital gain at ₹ 9,42,079/- but taking the stamp duty valuation under section 50C the .....

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n the market for purchase, therefore, the assessee could not make the investment in Bonds. The Bonds were available for sale only from 22.01.2007 and the assessee purchased Bonds on 01.02.2007 i.e. within 11 days from the date when the Bonds were available for sale in the market. In our opinion, the decision of the Hon’ble Bombay High Court n the case of CIT, Cent ral-III, Mumbai –vs.- Cello Plast (2012 (8) TMI 527 - BOMBAY HIGH COURT), is clearly applicable in the case of the assessee. The asse .....

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Addition made on account of the accrued interest on fixed deposits - Held that:- We find substance in the submissions made by the ld. A.R. that the interest income on FDR has been shown by the assessee regularly on the basis of the certificate received from the Banker as is included in the TDS. Similarly during the impugned year also, the interest has been shown by the assessee in accordance with the calculation given by the Banker. Since the assessee is regularly following the same .....

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None of the relevant provisions has been brought to our knowledge by the Revenue. We, therefore, delete the addition.- Decided in favour of assessee.

Assessment for rental receipt from the property - annual value adoption - Held that:- The assessee before us claims that the property was occasionally let out and part of the property is being occupied by the assessee as weekend destination which means that the property remains vacant for part of the year but the assessee has not given .....

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gality or infi rmity in the annual value being taken by the Assessing Officer on the basis of the rent which the assessee received during the assessment year 2004-05. We, therefore, confirm the addition made by the Assessing Officer. - Decided against assessee. - I.T.A. No. 1052/KOL/ 2014 - Dated:- 6-5-2015 - Shri P.K. Bansal, Accountant Member and Shri Rajpal Yadav, Judicial Member For The Assessee : Shri K.M. Roy, FCA, For The Department : Shri Anjan Prasad Roy, JCIT, Sr. D.R. ORDER Per P.K. B .....

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TO has to have reason to believe that income has escaped assessment. (3) For that the ld. ITO has no power to reopen the case since no tangible material was placed on record so as to show that there was escapement of income from assessment. (4) For that the ld. ITO erred in disallowing the exemption claimed under section 54EC against capital gain for investment in REC Bond and assessed tax on LTGG of ₹ 11,07,079/- is unwarranted by the facts of the case. (5) For that the ld. ITO erred in a .....

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iated by errors of law and as such liable to be quashed and/or set aside. 2. Grounds No. 1 to 3 are not pressed by the ld. counsel for the assessee at the time of hearing. Therefore, these grounds are being dismissed as not pressed. 3. Ground No. 4 relates to the not allowing exemption under section 54EC in respect of a sum of ₹ 11,07,079/-. 4. Brief facts relating to this ground are that during the year under consideration, the assessee sold his house property at Tara Road, Kolkata for a .....

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he conditions for the eligibility of the exemption under section 54EC of the Act were not fulfilled and, therefore, he disallowed the exemption. 5. The assessee went in appeal before the ld. CIT(Appeals), who held that exemption under section 54EC is available only when the specified Bonds are purchased within a period of six months. Since the assessee did not make the purchase within a period of six months from the date of the sale of property, therefore, he sustained the order of the Assessing .....

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of invest in Bonds would get automatically extended till bonds are available in market and assessee can purchase the same and claim exemption under section 54EC accordingly. We have gone through this decision as relied on by the ld. A.R. We noted that in that case also, the assessee sold its factory on 22.03.2006 and during the period 22.03.2006 to 01.07.2006 the Bonds were not available on 30.06.2006. CBDT issued the Circular extending the time to invest Bonds upto 31.12.2006, and upto 22.01.2 .....

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ent case, we noted that the assessee sold his house property on 15.01.2006 for a considerat ion of ₹ 23,00,000/- while as per the provisions of sect ion 50C, the consideration as per the stamp valuation was ₹ 24,65,600/-. The indexed cost of acquisition of the property came to ₹ 13,57,921/-. The assessee computed the capital gain at ₹ 9,42,079/- but taking the stamp duty valuation under section 50C the Assessing Officer computed the capital gain at ₹ 11,07,079/-. Th .....

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investment in Bonds. The Bonds were available for sale only from 22.01.2007 and the assessee purchased Bonds on 01.02.2007 i.e. within 11 days from the date when the Bonds were available for sale in the market. In our opinion, the decision of the Hon ble Bombay High Court is clearly applicable in the case of the assessee. The assessee had purchased the Bonds within reasonable period when the Bonds were available for investment. No cont rary decision was brought to our knowledge by the ld. D.R. e .....

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t the assessee has shown the interest on fixed deposit amounting to ₹ 88,390/- and from the details he noted that in respect of some of the deposit s, the assessee has not shown the interest income. The Assessing Officer, therefore, calculated the interest and added the same in the income of the assessee. The assessee went in appeal before the ld. CIT(Appeals) and ld. CIT(Appeals) dismissed the ground of the assessee. 8. We have heard the rival submissions and carefully considered the same .....

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ollowed by the assessee. Accordingly we delete the interest amounting to ₹ 32,570/-. 9. The next ground relates to the addition of ₹ 12,600/- as notional rent. 10. The fact s relating to this addition are that the assessee offered notional rent for two properties, namely at Gariahat Road and Tara Road. For Gariahat Road the rent was shown for nine months. The Assessing Officer was of the view that the rent shown by the assessee is at a lower side. He est imated the same @ ₹ 4,0 .....

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our knowledge by the Revenue. We, therefore, delete the addition. Thus this ground stands allowed. 12. The next ground relates to the addition of ₹ 64,396/-. The Assessing Officer when enquired the assessee submitted that this property is utilized by the assessee s family for weekend destination. But occasionally the property al so is let out for picnic, party or shooting and due to which the assessee got certain income. The Assessing Officer noted that the income from the said property va .....

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submissions and carefully considered the same along with the orders of the tax authorities. Ld. A.R. before us, even though vehemently contended for allowing deduct ion, but could not convince us how the annual value of the property will get reduced. It is not a case where the assessee has claimed vacancy allowance. Sect ion 22 of the Income Tax Act clearly stipulates that the income from the house property shall be chargeable under the head income from house property on the basis of annual valu .....

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