TMI Blog2019 (11) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... iod of limitation prescribed therein. Do not find any force in argument advanced by Ld.AR regarding granting of exemption u/s 54F in respect of entire land on which construction in respect of residential house as well as commercial building being nursing home have been done. It is observed that Ld.AO while computing capital gain, allowed ₹ 33,41,839/- as cost of land appurtenant to residential house for which there is no basis.CIT(A) mentions land on which residential house constructed amounts to ₹ 586.96 sq.mts, out of total land 2543.25sq.mts. Both AO and CIT(A) failed to compute vacant land that may be annexed to residential house. We therefore, direct Ld.AO to consider all these aspects for purpose of computing exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose of computation of long term capital gains in the hands of the appellant. 4. The learned Commissioner (A) ought to have appreciated that the appellant was entitled to the benefit u/s.54F of the Act as claimed by him in full. 5. The learned Commissioner (A) ought to have appreciated that the mere fact that the Nursing Home was constructed in addition to the residential house, the land purchased cannot loose the character of appurtenant land to the house to avail the benefit under section 54F of the Act. 6. Without prejudice, the capital gains as computed by the assessing authority is excessive, arbitrary and unreasonable and liable to be deleted in toto. 7. The Ld.Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 54F of the Act. 6. Without prejudice, the capital gains as computed by the assessing authority is excessive, arbitrary and unreasonable and liable to be deleted in toto. 7. The Ld.Commissioner(A) erred in confirming the interest u/s 234A, 234B and 234C of the Act. 8.For these and other grounds that may be urged at the time of hearing of the appeal the appellant prays that the appeal may be allowed . 2. ITA No. 676/B/2017 Brief facts of the case are as under: Assessee is a Doctor by profession and partner in M/s Maruti Nursing home. He filed return of income for year under consideration, declaring total income of ₹ 23,44,7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld together. 3.1 Ld.AO further observed that property was given on lease to firm namely M/s Sree Maruti Nursing Home, in which assessee and his son are partners. It was observed that firm invested funds in construction of building, which was used as nursing home, and, as per valuation report building constructed by this firm was valued at ₹ 33,34,579/-. Subsequent to sale, assessee invested fund realized from sale to acquire piece of land at Tumkur, jointly with his son and constructed residential house and nursing home. Assessee claimed exemption under section 54F of the Act, as capital gain arising on sale of property was invested in acquisition of land and construction of residential house and nursing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e area of land used for residential purposes. Ld. Counsel submitted that this is the only issue that has been raised by assessee in both appeals. It has been argued that sale consideration was invested in residential property at Tumkur, which was verified by Ld.AO and as long as residential house was constructed for which site is absolutely necessary, it could not be said that investment in cost of site in which residential building stands is not eligible for exemption claimed. 7. On the contrary, Ld.Senior DR placing reliance upon observation recorded by authorities below submitted that section 54F mandates granting of exemption to assessee on construction of residential house and not for any commercial purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... home have been done. However, it is observed that Ld.AO while computing capital gain, allowed ₹ 33,41,839/- as cost of land appurtenant to residential house for which there is no basis. Ld.CIT(A) mentions land on which residential house constructed amounts to ₹ 586.96 sq.mts, out of total land 2543.25sq.mts. Both Ld.AO and Ld.CIT(A) failed to compute vacant land that may be annexed to residential house. We therefore, direct Ld.AO to consider all these aspects for purpose of computing exemption u/s 54F and capital gains payable by assessee. Needless to say that assessee is eligible for benefit of indexation in computing capital gains. Accordingly, grounds raised by assessee tands allowed for statis ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
