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2016 (8) TMI 374 - ITAT MUMBAI

2016 (8) TMI 374 - ITAT MUMBAI - TMI - Disallowance of Long Term Capital Gain in connection with the furniture and fixtures attached with the transfer of tenancy rights - Held that:- The tenancy right has only been surrender in the property and there is no transfer of any kind of furniture and fixture in the lease deed. Transfer of furniture and fixture is not part and parcel of the agreement entered into by the appellant with the landlord. There is no bifurcation of the value of surrendering of .....

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rd to the furniture and fixture does not seem justifiable, therefore, CIT(A) has no doubt rightly confirmed the order passed by the Assessing Officer which does not require to be interfere with at this appellate stage. Hence, this issue is decided in favour of the revenue and against the assessee. - Exemption u/s.54F - Held that:- The assessee has received consideration of ₹ 2,75,00,000/- on transfer of tenancy right and after claiming brokerage he received the net consideration to the .....

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f the Act. The appellant paid the tax to the tune of ₹ 25,68,337/- on 29.08.2011. Consequently, the withdrawal of the money from his Capital Gain Deposit Saving Account nowhere attract the tax. No doubt in the said circumstances the CIT(A) has rightly decided these issues in favour of the assessee and against the revenue - I.T.A. No.131/M/13, I.T.A. No.1206/M/13 - Dated:- 22-6-2016 - SHRI R.C.SHARMA, AM AND SHRI AMARJIT SINGH, JM For The Assessee : Shri Satish R. Modi For The Department : .....

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rsy can conveniently be adjudicated by a single order. 2. The brief facts of the case are that the assessee filed return of his income on 12.08.2009 declaring total income to the tune of ₹ 6,03,245/- for the A.Y.2009-10. The return was processed u/s.143(1) of the Income Tax Act, 1961 ( in short the Act ) accepting the returned of income. Thereafter, the case was selected for scrutiny and notice u/s.143(2) of the Act was sent on 24.08.2010 which was duly served upon the assessee. Subsequent .....

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550/-, thereafter the revenue has also filed the appeal before us. 3. The assessee has raised the following grounds of appeal:- "1. The learned CIT(Appeal) erred in not allowing WDV of fixed assets worth ₹ 7,23,907/- against sale consideration of tenanted property. The Learned CIT has not considered or refer letter dated 06.03.2012 of M/s.Dhwani Mercantile Pvt. Ltd. stating that consideration of surrender paid to him was inclusive of furniture fixtures fitting etc lying the aforesaid .....

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eting the addition of ₹ 1,31,91,550/- without appreciating the fact that the assessee can claim exemption u/s.54F with respect to one residential house which has already been purchased by the assessee and there is nothing left on which the assessee can claim the exemption u/s.54F. Hence, the assessee will not be able to claim the deduction u/s.54F. Hence, the assessee will not be able to claim the deduction u/s.54F on the amount deposited in the Capital Gain A/c. Scheme. 3. On the facts an .....

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e Capital Gain A/c Scheme left after when the assessee has already purchased a new asset and full cost of acquisition of new asset purchased has been paid by the assessee. 5. On the facts and in the circumstances of the case, the appellant prays that the order of the CIT(A) on the ground(s) be set aside and that the Assessing Officer be restored. I.T.A. No.131/M/13(Assessee s Appeal):- 5. Issue no.1 raised by the assessee is in connection with the disallowance of Long Term Capital Gain to the tu .....

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Amritlal Kersardas Gandhi. The rent receipt was originally in the name of his father. By virtue of family arrangement, an agreement dated 4th December, 1997, the tenancy right was confirmed to be belonging to Shri Mahendra Amritlal Gandhi which was also indemnified subsequently by all family members in the declaration cum indemnity bond executed on 12th May, 2008. The tenancy right was transferred to the landlord M/s.Dherani Finance and Investment (P) Ltd. vide agreement dated 12th May, 2008. I .....

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nd had to be scraped. There was no possibility of having any short term capital gain on sale of furniture. Since the Assessing Officer was not satisfied, therefore declined the claim of the assessee which was also confirmed by the CIT(A). The tenancy right has only been surrender in the property and there is no transfer of any kind of furniture and fixture in the lease deed. Transfer of furniture and fixture is not part and parcel of the agreement entered into by the appellant with the landlord. .....

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e said circumstances the claim of the assessee with regard to the furniture and fixture does not seem justifiable, therefore, CIT(A) has no doubt rightly confirmed the order passed by the Assessing Officer which does not require to be interfere with at this appellate stage. Hence, this issue is decided in favour of the revenue and against the assessee. I.T.A. No.131/M/13 (Revenue s Appeal):- 6. Issue no.1 to 4 of revenue s appeal are interconnected, therefore, are being taken together for adjudi .....

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er hand learned representative of the assessee has refuted the said contentions. Before going further it is necessary to advert the finding of CIT(A) on record. CIT(A) has decided this issue in para no. 4.3 which is hereby reproduced below:- 4.3 I have carefully perused the assessment order and appellant s submission. The assessee has received consideration of ₹ 2,75,00,000/- on transfer of tenancy right and after claiming brokerage he received the net consideration at ₹ 2,71,50,000/ .....

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ellant has stated that he has already paid tax of ₹ 25,68,337/- on 29.08.2011 consequent to the withdrawal of the money from his Capital Gains Deposit Saving Account. Proviso (i)(a) and (b) of sub section (4) of section 54F reads as under: that if the amount deposited under this sub-section is not utilized wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then - (i) the amount by which - (a) the amount of capital gain arising .....

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