TMI Blog2021 (11) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessee : Shri G.S. Prashanth, CA For the Revenue : Smt. H. Kabila, Addl. CIT (DR) ORDER PER BEENA PILLAI, JM. Present appeal has been filed by assessee against order dated 26/02/2019 passed by the Ld.CIT(A)-5, Bangalore on following grounds of appeal: Sl. No. GROUNDS OF APPEAL Tax Effect in Rs. 1. a) The orders of the authorities below in so far as it is against the appellant, is opposed to law, weight of evidence, natural justice, probabilities, facts and circumstances of the appellant's case. b) The appellant denies himself to be assessed on a total income of ₹ 62,61,360/- as against the income returned by the appellant of ₹ 1,24,96,436/- on the facts and circum stances of the case. - 2. a) The authorities below erred in denying exemption claimed under section 54F of the Act of ₹ 62,35.074/- under the facts and circumstances of the case. b) The authorities below erred i n not appreciating that the appellant had not obtained the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 300/- 8. The appellant craves leave to add, alter, delete or substitute any of the grounds urged above. - 9. In view of the above and other grounds that may be urged at the time of the hearing of the appeal, the appellant prays that the appeal may be allowed in the interest of justice and equity. - Brief facts of the case are as under: 2. Assessee derives income from house property, business, capital gains and other sources. The assessee filed its return of income for year under consideration on 30/09/2013 declaring total income of ₹ 62,61,362/-. Accordingly, notice under section 143(2) was issued along with notice under section 142(1) of the Act. In response to statutory notices, representatives of assessee appeared before the Ld.AO and filed requisite details as called for. 3. The Ld.AO observed that assessee claimed deduction under section 54. Assessee was asked to furnish details of the capital gains and exemptions claimed in the computation of income. Assessee accordingly vide letter dated 4/12/2016 file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant year under consideration. It was also stated by the developer that the possession of the flats were never handed over to assessee but possession was given directly to the ultimate purchaser of the flat the developer further submitted that remaining 6 flats were not delivered to the assessee but were handed over to the ultimate buyers. 7. The Ld.AO on perusal of the submissions by assessee was of the opinion that, possession of the flats having directly handed over to the ultimate purchaser does not in any way alter the ownership of the flats. It was held that, once development work was completed by April 2011 and the flats started to be sold, it deemed to have been handed over to assessee. It was the opinion of the Ld.AO that, once development of the property is completed the right over the flats falling into assessee s share vests in him. The Ld.AO held that, the unsold flats are nothing but more than one s self occupied property and therefore provisions of section 54F stands violated as on the date of purchase of new asset during the year under consideration. The Ld.AO thus denied the exemption claimed by assessee under section 54F amounting to ₹ 62,35,074/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the constructed premises as per the JDA. 11.4 We have perused the joint development agreement placed at pages 30 to 44 of paper book, wherein, the sale consideration determined as against the transfer of right title and interest in the land by assessee for the purposes of development was 42% of the constructed premises being 24 residential units. In the Assessment Year under consideration, assessee is owner of 6 flats that are unsold under the JDA. In addition to this, assessee the owner of following residential properties as per statement of income for A.Y. 2013-14 placed at page 2 of the paper book. INCOME FROM HOUSE PROPERTY 1899250 SELF OCCUPIED HOUSE ADDRESS : 32, PROP.PRATHAP ELECTRICALS. 3 RD CROSS. 16 C MAIN. 4TH BLOCK. KORAMANGALA, BANGALORE, KARNATAKA-560025 NIL ANNUAL VALUE -150000 LESS: INTEREST U/S 24(b) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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