TMI Blog2020 (11) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... t is understood that the assessee has sold the 03 pieces of land and constructed a residential unit within the time specified in section 54F - As per the statement of facts placed before CIT(A) the entire transaction was completed within the time allowed u/sec. 54Fwhich clearly reveals that there were no separate transactions. By any stretch of imagination AC shed of 50 sq.ft. cannot be stated to be a residential house and at best it can be called as a security guard s room for guarding premises. Residential unit comprises of kitchen, bed rooms, hall, toilets etc. Therefore we are of the considered view that the assessee has sold the 03 pieces of land and constructed a single residential unit comprising of 3296 sq.ft. as a duplex unit as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,16,95,080/-and deposited the same in Capital Gains Deposit Scheme with Corporation Bank on 03/02/2009. Later she purchased the land admeasuring 313 sq.yds. with AC sheets shed and claimed exemption u/sec. 54F of the Act. Subsequently, she has given the said 313 sq.yds. of land for development to M/s.Surya Real Estates and Constructions. As per the development agreement, the assessee retained 2/3rdof land and the constructed area consisting of 2 floors with a built up area of 3296 sq.ft. The assessee also paid additional amount of ₹ 40.00 lakhs towards balance construction cost to the builder towards her share of constructed area. The AO viewed that transfer of land to M/s.Surya Real Estates and Constructions amounts to transfer wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld as dwelling unit since the AC shed was only 50 sq.ft. which does not have any amenities for living, therefore the assessee intended to construct a decent residential unit hence she has given the same land for development and retained 2/3rd of land and 2 floors out of 3 floors constructed in the area. Thus, the assessee has constructed a residential unit of 3296 sq.ft. in two floors. The assessee has also paid a sum of ₹ 40.00 lakhs to the builder for construction of the residential house to meet the deficit in cost of construction. Since assessee has sold lands and constructed the residential house, she is entitled for exemption u/sec. 54F of the act. The question of section 54F(3) does not come into play since the entire process w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee had disposed of 03 pieces of land for a consideration of ₹ 1,16,95,080/- and deposited the same in the capital gains deposit scheme with Corporation Bank on 03/02/2009. Subsequently, she had purchased the land with AC shed admeasuring 313 sq.yds. for a consideration of ₹ 65,88,000/- on 07/02/2009 and claimed deduction u/sec. 54F of the Act which was allowed by the AO in the assessment. Later on, the assessee has given the said land of 313 sq.yds for development to M/s. Surya Real Estates and Constructions. The assessee has enclosed the development agreement in paper book at page Nos. 22 to 28. The assessee also enclosed Memorandum of Understanding (MoU) entered into by the assessee with M/s.Surya Real Estates and Con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laced before the ld. CIT(A) the entire transaction was completed within the time allowed u/sec. 54F of the Act which clearly reveals that there were no separate transactions. By any stretch of imagination AC shed of 50 sq.ft. cannot be stated to be a residential house and at best it can be called as a security guard s room for guarding premises. It is accepted fact that residential unit comprises of kitchen, bed rooms, hall, toilets etc. Therefore we are of the considered view that the assessee has sold the 03 pieces of land and constructed a single residential unit comprising of 3296 sq.ft. as a duplex unit as mentioned in development agreement and MoU for which the assessee had spent a sum of ₹ 65,88,000/- + registration charges and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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