TMI Blog2023 (3) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... o be considered for eligibility for deduction u/s 54F of the Act and, in the present case, the assessee has demonstrated that she has invested higher amount in purchase of residential property than the total amount of consideration received by her against sale of plots. CIT(A) was right in holding that the condition required under sub-section (2) of section 54F of the Act and other requirements have been successfully satisfied by the assessee, therefore, the assessee was eligible for deduction u/s 54F to the extent of consideration invested in acquisition of new residential property which is undisputably higher than the amount of consideration received by the assessee on sale of plots. Therefore, we are unable to see any valid reason to interfere with the findings arrived and recorded by the ld.CIT(A) and, thus, we uphold the same. Accordingly, grounds of the Revenue are dismissed. - ITA No1793/Del/2020 CO No.32/Del/2021 (ITA No1793/Del/2020) - - - Dated:- 28-2-2023 - SHRI C.M. GARG, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER For the Assessee : Shri Rakesh Garg, Advocate For the Revenue : Shri Sanjay Kumar, Sr. DR ORDER PER C.M. GAR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Sr. DR took us through the relevant part of the assessment order and submitted that the assessee, by way of show cause notice dated 11.04.2019 was asked to furnish the documentary evidences to fulfill the conditions laid down in section 54F of the Act and the assessee submitted her reply dated 29.11.2019 which was not tenable as the assessee only stated that the exemption u/s 54F of the Act is also otherwise allowable to the assessee on the capital gain income. The ld. Sr. DR submitted that para 3.2.3 of the assessment order clearly reveals that the AO, after considering the reply of the assessee rightly noted that the assessee while making an alternative claim, has simply stated that the criteria with regard to investment of consideration received on sale of any existing property has been fully invested in new property, but, the AO rightly concluded that mere investment in new property is not only the criteria which, if fulfilled, would make an assessee eligible for claiming such exemption. The ld. Sr. DR submitted that unless and until the assessee demonstrates that all the required conditions as per the requirement of section 54F are fulfilled, then, the said claim cannot eve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indings and determination of the issue raised by the assessee in Form No.35. Therefore, ground No.2 of the Revenue fails. 8. We further note that the ld.CIT(A) has granted relief to the assessee with the following findings and determination:- 5. Findings/ Determination; The aforesaid appeal is against an addition under the head capital gains made by the AO for the AY 2017-18. During the course of assessment proceedings the AO held that the assessee had claimed deduction u/'s 54. While discussing the said deduction, the AO noted that 3.2.1 The facts of the case in hand are important for consideration. As a matter of fact, the assessee has received a consideration of Rs. 7,31,76,075/- against the sale of two plots located at Radice Road (Gokhale Marg), Lucknow during the subject year and at the time of execution of sale deed, the capital assets are plot instead of a house. The same is evident from sale deed of both the plots wherein the property description is described as a plot. Furthermore, also at the time of executing agreement to sell on 02-09-2016, the said property was described as a plot. It is pertinent to mention here that there is no relevance w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase of residential property for the said year. 5.4 The appellant has also stated that the only one other residential house was owned by the appellant at the time of acquisition or investment in residential property in FY 2016-17. The condition required under subsection (2) of section 54F is also herewith satisfied. The appellant is therefore eligible for deduction under section 54F to the extent the consideration is invested in acquisition of new residential house. 9. On careful consideration of rival submissions, stand of the AO and determination by the ld.CIT(A), first of all we note that the ld.CIT(A) rightly noted that the consideration received by the assessee was on account of sale of two plots of land located at 22, Radice Road (Gokhale Marg), Lucknow which was not a residential house. Therefore, deduction u/s 54 of the Act should not be claimed by the assessee as the same was available only in the case of capital gain arising from sale of a residential house. 10. The ld. CIT(A) further proceeded to consider the claim of the assessee of deduction u/s 54 of the Act. The AO, in the assessment order, as noted above, alleged that the assessee has not substanti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
