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B. Pullam Raju (HUF) , Kakinada Versus Addl. CIT, Range-4, Visakhapatnam

2016 (4) TMI 1088 - ITAT VISAKHAPATNAM

Claim of exemption u/s 54F - denial of claim as on the date of sale, the assessee owned more than one residential house and as per section 54F(1)(ii&iii) of the Act the assessee is not eligible for exemption - Held that:- On perusal of the confirmation letter issued by the builder, we find that the confirmation letter dated 20.2.2011 issued by the builder states that the assessee has paid advance towards purchase of two residential flats. The subsequent confirmation letter dated 11.11.2011 issue .....

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by the builder, it was noticed that the assessee has paid an amount of ₹ 29 lakhs towards flat no.401 and ₹ 25 lakhs towards flat no.502. As per said ledger accounts, the total cost including registration and additional works incurred for the flat is ₹ 29 lakhs for flat no.401 & ₹ 25 lakhs for flat no.502. As against this, the assessee has claimed exemption of ₹ 35 lakhs for flat no.401 & ₹ 29 lakhs for flat no.502. The additional amount of ₹ 10 lakhs st .....

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,515/- only has been incurred and this additional amount of ₹ 10 lakhs claimed by the assessee is not mentioned. The CIT(A) considering the details furnished by the assessee, denied the benefit of exemption u/s 54F of the Act. We do not see any error or infirmity in the order passed by the CIT(A). - Decided against assessee - I.T.A.No.678/Vizag/2013 - Dated:- 18-3-2016 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER For The Appellant : Shri G.V.N. Hari, AR Fo .....

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ossible to file the appeal within the time allowed under the Act. The A.R. further submitted that the assessee has filed an affidavit stating the reasons for delay in filing the appeal. Therefore, requested to condone the marginal delay of 5 days in filing the appeal. On the other hand, the Ld. D.R. did not raise any objections. Having considered the rival submissions and also perusal of the affidavit filed by the assessee, we find that the delay of 5 days in filing the appeal is neither intenti .....

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rutiny under CASS and accordingly, notices u/s 143(2) and 142(1) of the Income Tax Act, 1961 (hereinafter called as 'the Act') were issued. In response to the notices, the authorized representative of the assessee appeared from time to time and furnished the books of accounts and other details called for. During the course of assessment proceedings, the Assessing Officer noticed that the assessee has sold two properties and claimed exemption u/s 54 and 54F of the Act for reinvestments in .....

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tal gain as per the law and claimed exemption u/s 54 of the Act towards sale of residential house property and purchase of another residential house property. Similarly, it has claimed exemption u/s 54F of the Act, for sale of long term capital asset other than residential house property and reinvested the proceeds in purchase of residential house property. The Assessing Officer after considering the submissions made by the assessee, allowed exemption u/s 54 of the Act towards sale of residentia .....

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e is not eligible for exemption. 4. Aggrieved by this assessment order, the assessee preferred an appeal before the CIT(A). Before the CIT(A), the assessee reiterated its submissions made before the Assessing Officer. The assessee further submitted that the Assessing Officer was erred in not allowing the exemption u/s 54F of the Act. The assessee further submitted that as regards the amount spent towards additional work for the properties purchased at Bangalore, the builder has issued a confirma .....

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owing the amount spent towards additional work done for the two flats at Bangalore. While doing so, the CIT(A) held that the confirmation letter filed by the assessee dated 20.2.2011 is vague, as the builder did not specify the nature of work done for the flats. The CIT(A) further held that on perusal of the confirmation letter issued by the builder, it was simply stated that the assessee has paid advance of ₹ 10 lakhs towards purchase of residential flats 401 & 502. In the absence of .....

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that he has carried out additional works for the two flats, therefore, Assessing Officer and CIT(A) was not correct in denying the benefit of exemption for ₹ 10 lakhs u/s 54F of the Act. On the other hand, the Ld. D.R. strongly supported the order of CIT(A). 6. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The Assessing Officer disallowed the claim of exemption u/s 54F of the Act for ₹ 10 lakhs, on the .....

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and the builder confirmed having spent ₹ 10 lakhs towards additional works carried out in the flats. We have gone through paper book containing sale deed copies of the flats purchased and confirmation letter obtained from the builder. On perusal of the confirmation letter issued by the builder, we find that the confirmation letter dated 20.2.2011 issued by the builder states that the assessee has paid advance towards purchase of two residential flats. The subsequent confirmation letter dat .....

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