TMI Blog2017 (2) TMI 1180X X X X Extracts X X X X X X X X Extracts X X X X ..... property. In our considered opinion to claim the exemption u/s.54 of the Act, the assessee has to construct a house property within the stipulated period of time. Obviously, the purchase of land will be either antecedent to the construction or simultaneous to the construction. In any case, the purchases of land do not entitle the assessee for the exemption u/s. 54 of the Act. Therefore, we fail to understand when the land was purchased earlier to the start of construction how this can trigger the provisions of Section 263 of the Act. No merit in the order of the ld. Principal CIT made u/s. 263 - Decided in favour of assessee - ITA. No: 525/AHD/2016 - - - Dated:- 13-2-2017 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI S. S. GODARA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... correct claim of deduction u/s. 54 of the Act amounting to ₹ 63,03,311/- being deposit in capital gain account scheme out of sale consideration. However, it is noticed that the capital gain account shown by the assessee is actually saving bank account. Therefore, exemption claimed u/s. 54F(4) is not allowable and required to be disallowed. 2. Incorrect allowance of expenditure for new house construction. It is noticed that the expenses related to construction are claimed however no proof of payment made for acquiring land is on records. Therefore, the claim of exemption allowed u/s. 54 of ₹ 41,60,486/- is not correct. 5. Accordingly, statutory notice was issued and served upon the assessee. Calling upon the assessee t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther, the assessee's claim for deduction u/s 54 of the Act includes expenditure of ₹ 41,60,486/- claimed to have been spent for construction of new house. It is, however, seen that the expense pertain to construction and does not include any payment made for acquiring land. The details of expenses of ₹ 41.60,486/- provided suggest that the new property is not a ready built flat or property, the claim of deduction is towards a property being constructed. As per the exemption claimed for construction of house, it appears that the assessee has not furnished proof of land purchased/owned by her. Further, the assessee has also not filed building use permission. Therefore, it is not certain whether the assessee has constructed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Revenue. If one of them is absent-if the order of the Income-tax Officer is erroneous but is not prejudicial to the Revenue or if it is not erroneous hut is prejudicial to the Revenue- recourse cannot be had to section 263(1) of the Act. The provision cannot be invoked to correct each and every type of mistake or error committed by the Assessing Officer, it is only when an order is erroneous that the section will be attracted. An incorrect assumption of facts or an incorrect application of law will satisfy the requirement of the order being erroneous 8. Now, let us see in the light of the above ratio whether the assessment has been made on an incorrect assumption of facts or an incorrect application of law. As mentioned elsewhe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sitor, under this Scheme; (f) depositor - means an assessee who is eligible to make a deposit under section 54, 54B, 54D, 54F or 54G of this Act: (g) all other words and expressions used herein but not defined and defined in the Act shall have the meanings respectively assigned to them in the Act. (h) Form means a form appended to this Scheme. 3. Deposits how to be make- A deposit or deposits may be made under the provisions of section 54 or section 54B or Section 54D or section 54F or section 54G of the Act by any depositor intending to avail of the benefit under the said section or sections of the Act, as the case may be, in accordance with the provisions of this Scheme. 4. Types of deposits.- (1) There sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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