TMI Blog2023 (1) TMI 1011X X X X Extracts X X X X X X X X Extracts X X X X ..... of a registered document of transfer of title may have civil consequences in regard to his title, qua rights between the seller and purchaser but for the purpose of benefits of Section 54/54F, the assessee shall be deemed to have purchased the properties. As for the purpose of Section 54/54F of the Act, the important question is that money out of LTCG should be paid/spent by the assessee, before the end of statutory period, for claiming exemption. When the Ld. AO had not doubted the payments out of LTCG made by assessee for purchase of three properties with inchoate documents executed in favour of the assessee. Then for not having the sale deed executed in his favour, assessee cannot be said to have not Purchased the properties as a statutory compliance. Thus, the findings of Ld. CIT(A) in this regard require no interference. Residential nature of these three properties Ld. CIT(A) has thoroughly examined the issue. The 1st property situated lies in Tehsil Mehrauli, New Delhi. It is claimed by the assessee to be farm house and the house tax receipt issued by South Delhi Municipal Corporation mentioning that property is used for residential purpose was rightly relied by Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the assessment was completed u/s 143(3) on 28.03.2016 at an income of Rs. 1,40,69,502/- after computing taxable capital gain at Rs. 1,23,01,476/-. The Ld. PCIT was of the view that assessee has made a wrong calculation of the capital gains primarily for reason that he considered property to be not held for 36 months, accordingly, had directed Ld. AO to examine the issue afresh and withdraw the deduction claimed and granted to the assessee u/s 54F of the Act. Ld. AO vide fresh assessment dated 31.12.2018 had concluded that the gain that has arisen was long term capital gain however, disallowed the same for the reason that AO was not satisfied with the three properties which assessee claimed to have purchased out of long term capital gain and Ld. AO held they were not covered for the purchase u/s 54F. The relevant findings of para no. 7 of the Ld. AO are reproduced :- 7. The above submissions were considered. The claims of the assessee regarding acquisition of the two plots of land and claim of construction on the two new pieces of agricultural land cannot be accepted due to the following reasons:- (i) As per the assessment records, the Property No. Khasra No. 18, 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim of construction during these proceedings. (Disallowance - Rs.3,14,48,500/-) Since the assessee has furnished inaccurate particulars of the income. Penalty proceedings u/s 271(1)(c) of the Income Tax Act, 1961 is being initiated separately for furnishing inaccurate particulars of the income. 3. Ld. CIT(A) however took contrary view and gave benefit of Section 54F of the Act to the assessee so the revenue is in appeal raising following grounds :- (i) On the facts and in the circumstance of the case and in law, the Ld.CIT(A) has erred in not treating the order passed by the AO u/s 143(3) r.w.s. 263 of the Act dated 31.12.2018 as bad in law and thereby not cancelling/annulling the same as the said order was passed against the directions given by the CIT-23, New Delhi in the order u/s 263 dated 05.03.2018 which has not been appealed against by the assesse in ITAT and consequently the same has become final. (ii) On the facts and in the circumstance of the case and in law, the Ld. CIT(A) has erred in not appreciating the fact that by not following the directions of the CIT-23, New Delhi as given in order u/s 263 dated 05.03.2018, AO has travelled beyond hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stance of the case and in law, the Ld.CIT(A) has erred in deleting the addition of Rs.3,11,23,500/- despite the fact that the assesse has claimed deduction u/s 54F for purchase of three plots of land treating them as residential units while the provisions of section 54F clearly states that the relief under this section can be claimed only in respect of purchase of one residential unit but even this claim has not been proved by the assessee. (viii) On the facts and in the circumstance of the case and in law,the Ld.CIT(A) has erred in deleting the addition of Rs.3,11,23,500/- as the Ld. CIT(A) has accepted additional evidence in contravention of Rule 46A which was not available to the AO during assessment proceedings. (ix) On the facts and in the circumstance of the case and in law,the Ld.CIT(A) has erred in deleting the addition of Rs.3,11,23,500/- as the Ld. CIT(A) has stated that registered sale deed is not a must to claim the exemption u/s 54F and even 'Agreement to Sell' or registered POA will suffice which is not sufficient to prove the ownership of these residential properties. (x) On the facts and in the circumstance of the case and in law, the Ld.CIT(A) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record and the submissions it can be observed that as with regard to the fact that assessee was owner of the two properties sold being plot no. 22 23 Khasra No. 13/5/1 and 13/4/2 and village Sahadra Delhi for sale consideration of Rs. 3,88,00,000/- is not disputed. Assessee infact had claimed to have got these properties in family settlement with his brother Rakesh Bansal and there was a GPA in name Smt. Rekha Rani, wife of Sh. Rakesh Kumar Bansal, who had executed the sale deed, on which the capital gain was claimed by the assessee. Ld. AO even made enquiries in this regard and observed; 11. The assessee submitted a copy of GPA executed by Sh. Rakesh Kumar Bansal to Smt. Rekha Rani w/o Sh. Rakesh Kumar Bansal dated 10.06.2009 on a Notarised Non Judicial stamp paper of Rs.50/- In order to ascertain the above claim as to whether the property belonged to Sh. Rakesh Kumar Bansal information u/s 133(6) was sought for from Sh. Rakesh Kumar Bansal to confirm the following: a. Whether he owned the property if so when he acquired the same along with the documentary for the same. b. Whether he sold the property if so to whom and when and at what consideration. c. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therwise then by the registered sale deeds fall in the ambit of word purchase used u/s 54/54F of the Act. 10. The Bench is of considered opinion that execution of the sale deed or any document of Conveyance in favour of vendee, only transfers the legal title for the purpose of civil consequences. The ownership of a property is a bundle of interests and apart from the registered sale deed or any other document of conveyance, vendee can acquire interest in semblance of right of owner by documents like GPA or agreement to sell. The purchase of immovable property involves acquiring all those interests in the property. Same may be by some inchoate instruments in favour of the purchaser. Non execution of a registered document of transfer of title may have civil consequences in regard to his title, qua rights between the seller and purchaser but for the purpose of benefits of Section 54/54F, the assessee shall be deemed to have purchased the properties. As for the purpose of Section 54/54F of the Act, the important question is that money out of LTCG should be paid/spent by the assessee, before the end of statutory period, for claiming exemption. When the Ld. AO had not doubted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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