Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

B. Venkata Ramana Srinivas Versus ITO, Ward-2, Rajahmundry

Exemption u/s 54F - whether two flats owned by the assessee are commercial and assessee is eligible for exemption under sec. 54F for acquiring 3 flats in lieu of development agreement - Held that:- In the present case on hand, the records show that the assessee along with family members purchased incomplete residential apartment consisting of 8 flats. The assessee has taken housing loan from bank. The plan sanction was also for the purpose of residential purpose. The revenue records show that pr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. The CIT(A) has rightly confirmed the order of the assessing officer denial of claim - Decided against assessee. - I.T.A.No.134/Vizag/2015 - Dated:- 19-2-2016 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER For The Appellant by : Shri I. Sarish Kumar, DR For The Respondent : Shri G.V.N. Hari, AR ORDER PER G. MANJUNATHA, Accountant Member: This appeal filed by the assessee is directed against the order of CIT(A), Rajahmundry dated 19.3.2015 and it pertains to the a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n order book basis, that are not recorded in the books of accounts maintained in the regular books of business. During the course of survey, it was noticed that the assessee had entered into a joint development agreement-cum- General Power of Attorney along with 3 other co-owners with M/s. SNK Builders for development of a piece of land. As per the JD agreement, the assessee was received 3 flats and whose market value was determined at ₹ 30,87,580/-. Since, the transactions pertain to the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

otice, the assessee filed a revised statement of total income to arrive at a capital gain of ₹ 30,65,236/- and claimed exemption u/s 54F of the Act on the total capital gain for reinvesting the sale consideration in 3 flats. The A.O., however, after considering the explanations furnished by the assessee denied the benefit of exemption u/s 54F of the Act. While doing so, the A.O. held that as per the information available on record, the assessee owns 2 residential flats S1 & F1 in Soubh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he assessee submitted that the A.O. was not correct in rejecting exemption u/s 54F of the Act, as he has reinvested sale consideration for acquiring 3 flats by virtue of joint development agreement. The assessee, further, submitted that though he owned two flats at Soubhagya Nilayam, those are used for commercial purposes and also let out to two corporate entities i.e. one for Reliance General Insurance Company Limited and another for KAL Radio. The two flats owned by him are commercial in natur .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

see submitted that though it received three flats, all the flats are located in a single residential complex. In view of the judgement of the Hon ble Andhra Pradesh High Court in the case of CIT Vs. Syed Ali Adil 352 ITR 418, he is eligible for exemption for all the three flats as a single residential unit. The CIT(A), however after considering the explanations of the assessee held that the information available in the file clearly show that the building plan has been approved for construction o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

residential flats are being let out for commercial purpose would not alter the nature and characteristics of these two flats as residential house. With these observations, confirmed the assessment order and rejected the appeal filed by the assessee. Aggrieved by the CIT(A) order, the assessee is in appeal before us. 4. The Ld. A.R. of the assesee submitted that the CIT(A) was not justified in sustaining disallowance of exemption u/s 54F of the Act, as the assessee does not own any other resident .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

08. On the other hand, the Ld. D.R. strongly supported the order of the CIT(A). 5. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The only issue arises for our consideration is whether two flats owned by the assessee are commercial and assessee is eligible for exemption under sec. 54F for acquiring 3 flats in lieu of development agreement. The A.O. disallowed the claim of exemption u/s 54F of the Act, on the ground .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

at the flats are let out for commercial purposes and also electricity consumption was charged on commercial basis, the fact that the plan sanction was for the purpose of residential building cannot be ignored. The facts clearly indicate that the assessee initially purchased the residential flats and later converted into commercial purposes because it is financially viable. Therefore, there is no doubt that the assessee owned two residential properties as on the date of transfer of asset other th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sidential house subject to certain conditions. The one such condition is that as on the date of transfer of original asset, the assessee should not own more than one residential house other than the new house. A careful study of section 54F of the Act made it clear that the objective of enacting this provision was to encourage the housing activity by giving exemption from tax. The basic idea of putting a cap on number of units is to discourage this type of practice of buying multiple houses, so .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for exemption u/s 54F of the Act. 7. Coming to the case laws relied upon by the assessee. The assessee relied upon ITAT, Chennai Bench decision in the case of ITO Vs. M. Venkatesan (supra). We have considered the case law relied upon by the assessee in the light of the facts of the present case and find that the decision is not applicable to the facts of the present case. The case before ITAT, Chennai bench was, whether the property purchased was residential or commercial. In the said case, the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Article: SERVICES UNDER REVERSE CHARGE UNDER GST REGIME

Forum: Duty Drawback & Input Credit - under GST

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Credit on Repair of Company Car & Its Insurance

Highlight: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017 - Notification

Highlight: Companies (Acceptance of Deposits) Second Amendment Rules, 2017 - Notification

Highlight: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. — reg. - Circular

Highlight: Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20 - Public Notice

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Circular: Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20

Notification: Companies (Acceptance of Deposits) Second Amendment Rules, 2017

Notification: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017

Forum: Trans1 return

News: Exchange Rate of Foreign Currency Relating To Imported and Export Goods Notified

Circular: Promote the officers of the Indian Revenue Service (Customs and Central Excise) to the grade of Principal commissioner of customs, GST & CX

Circular: Allocate the charges amongst the Members of the Central Board of Excise and Customs

Circular: Strategy for audits in 2017-18 consequent to GST - Audit by Central Excise and service Department to continue for the accounting year 2016-17 and for the past period

Circular: Appoint the IRS (C&CE) officers as Principal Commissioner (Revision Application) and ex-officio Additional Secretary

Circular: Time limit for filing intimation for composition levy under Rule 3(1) of the CGST Rules, 2017 extended to 16-8-2017

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017

Circular: C.B.E. & C. Advisory on Customs related matters on introduction of Goods and Services Tax regime

Circular: List of Reduced Tax Liabilities under GST regime in comparison to present combined Indirect Tax rates

Circular: Works Contract for construction of Flats, Complex — Builders to pass on GST benefit to buyer otherwise anti-profiteering provisions of Section 171 of GST Act to apply

Circular: Clarification regarding applicability of section 16 of the IGST Act, 2017, relating to zero rated supply for the purpose of Compensation Cess on exports – Regarding.

Circular: Clarification on Inter-state movement of various modes of conveyance, carrying goods or passengers or for repairs and maintenance- regarding

News: RBI Reference Rate for US $

Highlight: Addition u/s 23(1)(a) - deemed rent - once the property is let out and at any point of time this remained vacant during the same cannot be brought to tax under the head House properties income.

News: Haryana constitutes screening committee on anti-profiteering

Highlight: Valuation of imported goods - it is necessary to re-examine the matter of both license agreement as well as supply contract simultaneously, to see if the enhanced royalty was in the guise of adjustment of the price of components.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

Highlight: Cenvat credit availed on Club Membership for the Director is not admissible as it cannot be said to be remotely connected with the activity of manufacture

Circular: Amendments in Hand Book of Procedures 2015-20 –reg.

News: Jaitley asks biz not to wait till last day to file GST returns

Circular: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. — reg.

Article: 20 Things You must know about E Way Bills in GST Law

Article: ‘DUTY DRAWBACK’ CANNOT BE EQUATED WITH ‘REBATE OF DUTY’

Highlight: Notification regarding GST rate for branded cereal, pulses and flour

News: Notification regarding GST rate for branded cereal, pulses and flour

Highlight: Anti-dumping duty on import of bus/truck tyres from China

Highlight: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Non-payment of service tax - maintenance and repair charges - appellants had knowingly and deliberately shown the repair charges as job work charges to mislead about their taxability - demand confirmed.

Highlight: BAS - execution of the project of smart card for vehicle registration – implementing the SOC-VRC project - The fact that the Government has outsourced some part of the work and paid certain consideration for such outsourced work, does not make the activity subject to service tax.

News: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Constitution of National Anti-profiteering Authority (NAA) under GST-reg. - Trade Notice

Highlight: Amendments in Hand Book of Procedures 2015-20 –reg. - Various amendments are made in Chapter-4 of Hand Book of Procedures 2015-2020.

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

News: RBI Reference Rate for US $

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version