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The I.T.O. Ward 2 (4) , Jaipur Versus Rajesh Sharma

Eligibility for exemption U/s 54 on unregistered property purchased from son of the assessee - Seller has stated that this was only settlement- CIT(A) allowed the claim - Held that:- The assessee had entered into an agreement for purchase of house at B-37, New Lite Colony, Tonk Road, Jaipur on 29/4/2009. The transferee had paid the said consideration of ₹ 75 lacs and is willing to fulfill other conditions and has taken over possession of the same on 29/4/2009. Therefore, the transferee get .....

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re the stamp authority. The son also has disclosed the capital gain on sale of residential immovable property to his father in the income tax return and paid the tax on capital gain. These facts have not been controverted by the ld DR, therefore, we uphold the order of the ld CIT(A). - Decided in favour of assessee - ITA No. 105/JP/2013 - Dated:- 4-3-2016 - SHRI R.P. TOLANI, JM & SHRI T.R. MEENA, AM For The Revenue : O.P. Bhateja (Addl.CIT) For The Assessee : Shri Atul Sethi (C.A.) ORDER PER .....

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/s 54. 2. The sole ground of the revenue s appeal is against allowing deduction U/s 54 of the Income Tax Act, 1961 (in short the Act) on unregistered property purchased from son of the assessee. The assessee filed return of income on 05/12/2009 declaring total income of ₹ 54,27,550/-. The case was scrutinized U/s 143(3) of the Act. The assessee has shown his income from consultancy for insurance business, house property and income from other sources. The ld Assessing Officer observed that .....

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ee has been reproduced by the Assessing Officer on page Nos. 2 and 3 of the assessment order. The assessee got construction done on plot No. C- 54, Tilak nagar, Jaipur and deductions of construction was claimed at the time of calculation of long term capital gain. The computation has also been reproduced on page No. 3 of the assessment order. At the time of return, the assessee had claimed deduction U/s 54 of the Act at ₹ 75 lacs for purchase of a new house. The ld Assessing Officer asked .....

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summons to son of the assessee Shri Nishant Sharma and statement U/s 131 also recorded by the Assessing Officer. The Assessing Officer cross verified the sale of plot No. B-37, New Lite Colony, Tonk Road, Jaipur to assessee and asked that he has not disclosed capital account on account of sale of this property. During the course of statement, he admitted that this was only a settlement, therefore it was not shown in his income tax return. The ld Assessing Officer concluded that the assessee had .....

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ey title and do not amount to transfer, nor can they be recognized or valid made of transfer of immovable property. Accordingly, he not allowed the deduction U/s 54 of the Act on ₹ 75 lacs. 3. Being aggrieved by the order of the Assessing Officer, the assessee carried the matter before the ld CIT(A), who had deleted the addition by observing as under:- 4.3 I have carefully perused the order of the AO and the submissions of the AR along with the evidence filed. I concur with the submission .....

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2,150/-. 3. Therefore, the transaction is covered u/s 2(47)(v) of the I.T. Act, 1961. To this extent even the case law relied on by the AO namely M/s Suraj Lamp & Industries Pvt. Ltd. is State of Haryana & Anrs. has mentioned that such Agreements to Sale are to be recognized to the extent of section 53A of TP Act. Since section 53A of TP Act is recognized as transfer for computing income u/s 2(47)(v) of the I.T. Act this transaction cannot be denied given the evidence on record. Therefor .....

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not got immovable property registered, therefore, this transaction is only not to pay capital gain tax by the assessee. 5. At the outset, the ld AR of the assessee has reiterated the arguments made before the ld CIT(A). It is submitted that the sale agreement between the assessee and his son is not registered but is agreement to sale. Both the assessee as well as son of the assessee Shri Nishant Sharma had been examined by the Assessing Officer U/s 131 of the Act. During the course of statement .....

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Tonk Road, Jaipur. He further referred the transfer definition provided U/s 2(47) of the Act and submitted that there is a written contract for sale of specific immovable property. The transferee has, in part performance of the contract, taken possession of the property, or any part thereof. The transferee should have performed or should be willing to perform his part of the contract and has done some act in furtherance of the contract. The assessee had entered into an agreement for purchase of .....

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