Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2020 (2) TMI 652

..... ded any note exhibiting the fact that she owned other flats. Copy of the return has been placed on page no.15 to 21 of the paper book submitted on 16.1.209. Non-disclosure of the above facts in the computation of income if looked into in the light of the reply given to question no.9 would indicate that prima facie claim of the assessee was not admissible, because, she failed to disclose details of that property. Hence, during the course of search, it was unearthed that the assessee’s claim under section 54Fwas doubtful claim. In the above situation, the AO is justified to initiate action under section 153A of the Act. We do not find any merit in this ground of appeal. It is dismissed. Disallowance of exemption u/s 54F - investment in .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... refore, in view of above discussion, we are of the view that the assessee is entitled for exemption under section 54F of the income Tax Act. We direct the AO to grant exemption of ₹ 50 lakhs on account of investment in new residential house out of long term capital gain. - Decided in favour of assessee. - IT(SS)A.No.142/Ahd/2015 - 22-1-2020 - Shri Rajpal Yadav, Hon ble Judicial Member And Shri Waseem Ahmed Hon ble Accountant Member For the Assessee : Shri Sakar Sharma, AR For the Revenue : Shri Aarsi Prasad, CIT-DR ORDER PER RAJPAL YADAV, JUDICIAL MEMBER Assessee is in appeal before the Tribunal against order of ld.CIT(A)-1, Vadodara dated 16.2.2015 passed for the assessment year 2009-10. 2. Assessee has taken four grounds of appeal, .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... ) upto 31.9.2010. Thus, before the search, the time limit to issue notice under section 143(2) for passing a regular assessment order under section 143(3) had already expired. On the strength of this, ld.counsel for the assessee submitted that the AO has disallowed claim of the assessee for grant exemption under section 54F, and such exemption has been denied without relying upon any material unearthed during the course of search, therefore, his order qua this issue is not sustainable. In support of his contentions, he relied upon a large number of decisions viz. - i) Pr.CIT Vs. Desai Construction P.Ltd., 387 ITR 552 (Guj); ii) Pr.CIT Vs. Devangi, 394 ITR 184 (Guj) iii) Priya Holding P.Ltd. Vs. ACIT, 90 taxmann.com 408 (Guj); 6. On the othe .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... ndicate that prima facie claim of the assessee was not admissible, because, she failed to disclose details of that property. Hence, during the course of search, it was unearthed that the assessee s claim under section 54Fwas doubtful claim. In the above situation, the AO is justified to initiate action under section 153A of the Act. We do not find any merit in this ground of appeal. It is dismissed. 8. In the next ground, the grievance of the assessee is that the ld.CIT(A) has erred in confirming disallowance of exemption under section 54F of the Act amounting to ₹ 50 lakhs. 9. Before, we advert to the facts, we would like to note relevant part of section 54F, which reads as under: 54F. (1) Subject to the provisions of sub-section (4) .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... ave rise to long term capital gain. She has purchased a new residential house in India. Only objection raised by the AO is that she was having more than one residential house other than the new asset on the date of transfer of original asset. In other words, in the opinion of the AO, her case falls within the ambit of sub-clause (a)(i) of proviso of section 54F(). The ld.counsel for the assessee at the time of hearing placed on record details in tabular form with respect to all properties owned by assessee, and such details reads as under: Sr. No Details of Property referred to in assessment order in Para 7.1 at Page 5 Paper Book Page No Individually or jointly owned property Purpose for which property was used 1 70% share in Park View Apar .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... ital asset. In other words, this proviso disentitle benefit of section 54F only in a case where the assessee owns more than one residential house, other than the new asset on the date of transfer of original asset. Meaning thereby, if an assessee was having two residential houses already, when she purchased new house by utilizing long term capital gain, then she will not be entitled to claim exemption under section 54 of the Act. 12. The ld.DR on the other hand contended that Flat at Indore, Bafna Tower is a residential house. The assessee has treated it as commercial asset, and if it be treated as residential house, then the assessee would be having two residential houses at the time when she used alleged capital for purchase of new house. .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||