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Mr. Rajeev B. Shah Versus The Income Tax Officer

2016 (7) TMI 538 - ITAT MUMBAI

Claim of deduction u/s 54F denied - assessee is not able to get the title of the flat registered in his name or unable to get the possession of the flat, which is under construction - Held that:- It is a fact that the assessee has invested this amount of ₹ 18,60,000/- in purchase of residential house within the stipulated period prescribed u/s 54F of the Act. But, it is not in the assessee’s hand to get the flat completed or to get the flat registered in his name, because it was incomplete .....

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his name and this cannot be the reason for denying the claim of the assessee for deduction u/s 54 of the Act. In view of the above facts of the case, we are of the view that the assessee is entitled for deduction u/s. 54F of the Act, because the assessee has already invested a sum of ₹ 18.60 lakhs in the residential property under construction within the time limit prescribed u/s. 54F of the Act - Decided in favour of assessee. - ITA No. 262/Mum/2015 - Dated:- 8-7-2016 - Sri Mahavir Singh .....

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the Act ). 2. The only issue in this appeal of the assessee is against the order of the CIT (A) confirming the action of the AO in disallowing the claim of deduction u/s 54F of the Act. For this, the assessee has raised the following two grounds:- (1) The learned Commissioner of Income-tax (Appeals)- 27, committed a gross error of law and facts in rejecting the claim of deduction u/s. 54F of the Income-tax Act, 1961 made by the appellant for purchasing a residential house under construction agai .....

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ions of Section 54F of the Act. The AO disallowed the claim of the assessee for deduction u/s 54F of the Act for the reason that the assessee has not registered the document for his claim for purchase of property even after three years of the said investment of capital gains in property. He also made a passing reference that the genuineness of the investment in question is not proved. Accordingly, he disallowed the claim. Aggrieved, the assessee preferred appeal before the CIT (A), who also conf .....

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or the purpose of section 54F, the appellant s obligation ended as soon as he issued the cheque . Aggrieved, the assessee is in second appeal before the Tribunal. 4. We have heard the rival contentions and gone through the facts and circumstances of the case. The admitted facts under consideration are that the assessee sold a plot of land at Rajkot, Gujarat for a consideration of ₹ 19,35,325/- on 09-02-2010. The assessee has earned Long Term Capital Gains of ₹ 14,81,284/-. The assess .....

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pages 4 to 7. The assessee also paid further amount in joint partnership. This investment was made by two co-owners viz. Mitesh K. Patel 60% and the assessee Rajeev B. Shah 40%. They made investment to the tune of ₹ 43.10 lacs and assessee s share was ₹ 18,60,000/-. The AO rejected the claim of deduction u/s 54F of the Act only on the ground that the property is incomplete and registered document was not filed by the assessee in respect to the claim of deduction u/s 54F of the Act. T .....

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lause 3 (d) and 3 (e) of the Plaint reads as under:- (d) An order and direction calling upon the Defendants to commence construction of the said project on the said property and construct the suit as per the agreement evidences by the allotment letter; (e) An order and injunction restraining the Defendants from creating third party rights in respect of the suit flat and/or equivalent area in the said project or any other project of the Defendants as directed by this Hon ble Court ; In view of th .....

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