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2020 (2) TMI 652

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..... arthed 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 new residential house out of long term capital gain - HELD THAT:- There is no dispute with regard to fulfillment of other conditions by the assessee as contemplated in section 54F. She has sold long term asset and which gave 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 .....

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..... ssee : 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, out of which ground no.1 is general ground, which does not call for recording of any finding, hence rejected. 3. In ground no.3, the assessee has submitted that the ld.CIT(A) has erred in not deleting interest charged under section 234B of the Act amounting to ₹ 8,25,140/-. As far as charging of interest under section 234B is concerned, the same is consequential in nature. In case while giving effect to order of the Tribunal it comes out that t .....

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..... r 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 other hand, the ld.CIT-DR took us through statement of the assessee recorded during the course of search. He made reference to question no.9 and its reply. Under question no.9, the assessee was asked to give details of movable and immovable properties held by her, and her family members, and also source thereof. In response to this question, assessee disclosed that she owned two flats; one at 281, 28th Floor, Kalpataru Heights, Dr.A. Nair Road, Mumbai, a .....

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..... e 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), where, in the case of an assessee being an individual or a Hindu undivided family, the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, one re .....

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..... lar 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 Apartment, Mumbai 36-50 Jointly owned and sold in A.Y. 07-08 Residential 2 90% Shares in Flat No 281, Kalpatru Heights, Agnipada, Mumbai Jointly owned and presently used as residence Residential 3 Flat No 17A/B, East Court Condominium, Ghorpadi, Pune 5-10; 51-94 Jointly owned and gifted in A.Y. 2004- Residential 4 Flat at Indore, Bafna Tower 13-14; 22-35 Individually and acquired on 26th Oct, 2007 Commercial 5 Flat at Udaipur Hitawala Complex 95-119 Indi .....

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..... 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. For buttressing his contention, he referred to paper book wherein copy of the purchased deed has been placed on record. 13. The ld.counsel for the assessee, on the other hand, submitted that though in the sale deed it has been narrated as a residential house but it ceased to be a residential house. The whole Bafna Tower has been rented out by the residents. For buttressing his contention, he placed on record copies of photographs exhibiting that var .....

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