TMI Blog2018 (8) TMI 1051X X X X Extracts X X X X X X X X Extracts X X X X ..... zed Section 54 of the Act and held that the time period of one year prior to the date of transfer giving rising to the capital gains, was available only for an investment in the nature of purchase of a residential house and not for construction of a residential house. What is rectifiable u/s.254(2) of the Income Tax Act, 1961 is only a glaring and apparent mistake and not one which require long arguments and debates on the issues involved. - Application of rectification rejected - Decided against the assessee. - M.P.No.136/CHNY/2018, I.T.A. No.234/CHNY/2017 - - - Dated:- 10-8-2018 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER] Petitioner by : Shri. B. Ramana Kumar, Advocate Respondent b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue. 2. Per contra, ld. Departmental Representative submitted that there were no mistakes in the order of the Tribunal amenable to any rectification. 3. We have considered the rival contentions and perused the orders. What was held by this Tribunal at para 11 is reproduced hereunder:- 11. We have considered the rival contentions and perused the orders of the authorities below. Viz-a-viz claim of exemption u/s.54 of the Act what is laid down by the statute is reproduced hereunder:- 1) Subject to the provisions of sub-section (2), where, in the case of an assessee being an individual or a Hindu undivided family the capital gain arises from the transfer of a long-term capital asset being buildings or lands appurtenant there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be, the cost shall be reduced by the amount of the capital gain . The terminology used is purchase of a residential house within one year before or two years after from the date of transfer or construction of a residential house within three years from the date of transfer. Copy of the agreement dated 26th July, 2012 between the assessee with M/s. Aarthik Properties Limited is available on record. Schedule C gives the specification with which the apartment is to be constructed. Clause 1 to 4 of this agreement is also relevant and reproduced hereunder:- 1.The VENDOR shall agree to sell the SCHEDULE B 'ROPERTY to the PURCHASER or to their nominees, as mentioned in the SCHEDULE B PROPERTY to a Total sale consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruction of the flat and giving it to the assessee in a built up condition. It was not the purchase of an already built residential house. Once the payments were for construction, only the amounts paid by the assessee within a period of three years from the date of transfer of asset, giving rise to the capital gains could be considered for deduction u/s.54 of the Act. The date of transfer of the asset giving rise to the capital gains was 15th November, 2012 and the payments made by the assessee to M/s. Aarthik Properties Limited after the said date was H5,00,000/- only. We are therefore of the opinion that lower authorities were justified in restricting the claim u/s.54 of the Act to the amounts paid by the assessee after 15.11.2012. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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