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TMI Blog2023 (3) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... enivasan (Addl.CIT) - Ld. Sr. DR ORDER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. Aforesaid appeal by Revenue for Assessment Year (AY) 2005-06 arises out of the order of learned Commissioner of Income Tax (Appeals)-1, Trichy [CIT(A)] dated 01-01-2019 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) r.w.s 263 of the Act on 13-11-2015. The revenue has filed revised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e., in Asst. Year 2006-07. 4. Whether, in the facts and circumstances of the case, the CIT[A) is right in allowing deduction U/s. 54 of the Act when the assessee got permission from his office being a central govt. employee by order dated 19/10/2006 and completed in 2007 March. Whereas the property is claimed to be constructed during the fin. Year 2004-05 relevant to Asst. year 2005-06 thereb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... family property and earned Long Term Capital Gains (LTCG). The proceeds were invested by the assessee in construction of anther house property and the assessee claimed deduction u/s 54 which was allowed by Ld. AO in an assessment framed u/s 143(3) r.w.s. 147 on 28.12.2012. However, this order was subjected to revision u/s 263 on the ground that the deduction allowed by Ld. AO was not in order. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me that the construction was started after obtaining the approval. Further, the assessee paid amount of Rs.7 Lacs towards construction and other related activities during the year which was supported by the fact that the electricity connection was obtained during February, 2006 and payment was also made which would show that the construction activities were started well before the approval taken f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gains account scheme. Another undisputed fact is that the amount of capital gains earned by the assessee has been utilized towards construction of house property though the new house property has been acquired in the name of the assessee's wife. However, the same, in our considered opinion, would not jeopardise the claim of the assessee considering the fact that the utilisation of sale proceeds t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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