TMI Blog2021 (10) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of ₹ 80 lakhs given to the builder within the prescribed time, subject to fulfillment of other conditions. Since there was no occasion for the AO to examine details of purchase of new property, we are remitting this issue for examining the details of purchase of new residential house property. Assessee is owning three residential houses - The ground floor is used by the assessee and the first floor has been let out to two tenants. The assessee invited our attention to the building plan and some other documents. Accordingly the Ld A.R contended that there is no violation of sec.54F of the Act on this aspect. In our view, this fact also requires examination at the end of the AO. If the assessee owns only one residential property, which consisted of three residential units, in our view, it should be considered as one residential house only. In this regard, we derive support from the decision rendered by the co-ordinate bench in the case of Shri Bhatkal Ramarao Prakash [ 2019 (2) TMI 1059 - ITAT BANGALORE] Appeal of the assessee is treated as allowed for statistical purposes. - ITA No.485/Bang/2019 - - - Dated:- 24-9-2021 - Shri N.V. Vasudevan, Vice President An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 234A,234B and 234C of I.T. Act, 1961. The appellant denies the liability to pay interest. The interest having been levied erroneously is to be deleted. 7. In the view of the above and other grounds to be adduced at the time of hearing, it is requestedthat the impugned orders be quashed or atleast it be held that the appellant is entitled to deduction u/s. 54F of the Act, the deduction u/s. 24(b) be allowed and the loss on profession be allowed and alternatively, the deduction for brokerage and cost of improvement be allowed while computing capital gains and interest levied be also deleted. 2. All the above grounds of appeal are directed against the deduction claimed by the assessee u/s 54F of the Income-tax Act,1961 ['the Act' for short]. The facts relating to the issue are stated in brief. The assessee initially filed his return of income for the year under consideration on 27.3.2014 and the same was processed u/s 143(1) of the Act. Subsequently, it was noticed by the AO that the assessee has sold a vacant site bearing No.5A.C- 318 situated at 3rd Block, Hennur Road, Banaswadi Road Extension, Bengaluru on 30.8.2012 for a consideration of ₹ 85 lakhs. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for both the houses. This rent received has already been declared as income from house property in the return of income filed for A.Y. 2013-14. I am also received salary income from M/s. Arihant Education Research Foundation, New Delhi. Further, I have professional income from Management Consultancy receiving from M/s. Axheleon IT Services Pvt. Ltd. and M/s. Hibiscus Technology Solutions Pvt. Ltd., and other companies as and when services provided. This income is being received through cheques/on-line transfer after due deduction of TDS. This income is declared n the return of income. Apart from the above, I have no other income. 6. The A.O. also recorded sworn statement from the Managing Director of M/s. VSPL named Shri Vikaram Prabhakar. In the sworn statement Shri Vikram Prabhakar stated that the assessee had initially cancelled the agreement for purchase of commercial office space and entered into another agreement for purchase of flat No.B-401, Marappa Garden, Bengaluru. He further submitted that, later on, the assessee cancelled the agreement entered for purchase of residential flat at Marappa Garden and agreed for purchasing the commercial office space on 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties and perused the record. We noticed that the AO has rejected the claim for deduction u/s 54F on two reasons. (a) With regard to the first reason that the assessee has not purchased/constructed any new residential house, we notice that the assessee has submitted before Ld CIT that M/s VSPL, to whom advance of ₹ 80.00 lakhs was given, has finally executed a sale deed dated 19-12-2018 in favour of the assessee selling a residential apartment no. A001 in Block A, 1st Floor, Vaishnavi Mandara, Situated at Ward 11, Industrial suburb, 3rd Cross, 2nd Stage, Yeshwantpur, Bangalore having PID No.11-59-46 for a sale consideration of ₹ 80 lakhs. (refer page 9 of order of CIT(A).) We have noticed that the assessee has paid the amount of ₹ 80.00 lakhs on 22.4.2013, while the vacant plot was sold on 30-8-2012, meaning thereby, the assessee has invested the a sum of ₹ 80 lakhs, out of sale consideration of ₹ 85.00 lakhs in purchasing a new residential property. The fact that the assessee got the property only in 2018 is due to reasons beyond the control of the assessee, which has been narrated in the earlier paragraphs. Hence the assessee should not s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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