9911796707
TMI Blog2010 (7) TMI 1138X X X X Extracts X X X X X X X X Extracts X X X X ..... rding to the Revenue the assessee entered into an agreement with the builder/developer for purchase/construction of the flats before sale of the property; and this disentitled him from making a claim under sec. 54 or 54F of the Ac. Further grievance is that the CIT(A) applied Circular No.667 dated 18-10- 1993 of the C.B.D.T which as per the Revenue was not applicable on facts here. 3. Short facts of the case are that the assessee sold a house property at Poes Garden, Chennai and also certain land at Madambakkam. The capital gains arising from such sale was claimed by the assessee as exempt u/s. 54 and 54F of the Act on account of investment in a house property at Ranjit Road, Kotturpuram, Chennai. The agricultural land was sold during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 54F were not satisfied. Such exemption was, therefore, not allowed. 4. In his appeal before the CIT (Appeals) the argument of the assessee was that even if there was an agreement for construction entered earlier to date of sale of the properties, undoubtedly investment in the undivided share of the land was made only subsequently and the cost of the land was an integral part of the cost of the residential house. Assessee also placed reliance on the Board Circular No.667 dated 18-10-1993. As per the assessee, the cost of investment in the land was sufficient to cover the capital gains and, therefore, the exemption claimed ouight to have been allowed. It was also claimed that the land sold at Madambakkam village was agricultural in nature. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in CIT vs. Sardarmal Kothari & another (2008-TMI-30187 dated 17-6-2008), CIT vs. H.K.Kapoor (234 ITR 753) (Allahabad)., CIT vs. Smt. Bharati C.Kothari (2000) 244 ITR 352 (Cal.). and CIT vs. J.R.Subramanya Bhat (1987)165 ITR 571 (Kar.). 8. We have heard the rival contentions and perused the records. The grievance of the Revenue is that the assessee had entered into construction agreement on 11-12-2000 when the sale on which capital gains exemption was claimed was effected in 2002 and 2003. Whatever may be date of the construction agreement, it is not disputed by the Revenue that the undivided share of the land which was for the flat for which construction agreement was entered into, was registered in the name of the assessee on 20-3-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
