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TMI Blog2024 (2) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the Commissioner of Income Tax (Appeals) (hereinafter referred as Ld. CIT(A)) has erred in law and facts of the case while upholding the total income of the appellant at Rs. 1,39,60,530/- as against a total income of Rs. 1,04,01,920/- declared by the appellant in the return of income. In the return of income appellant had claimed deduction u/s 54 of the act against the above declared income under the head Long Term Capital Gain and Ld. ACIT, Circle 63(1), Delhi (hereinafter referred as Ld. AO) alleged in his order that the new property has not been purchased by the appellant within the time period specified by provisions of section 54 of the Act, thereafter Ld. CIT(A) sustain the addition of Rs.35,58,612/- As Such, the addition is bad i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d may please be deleted. 5. That the appellant craves leave to add, alter or delete any ground of appeal during the course of hearing." 3. Brief facts of the cases are that, the assessee filed return of income declaring at Rs. 94,02,280/- on 30/10/2017 thereafter revised return declaring total income of Rs. 1,04,01,920/- was filed on 30/03/2019. In the return of income, the assessee had offered for tax income from Long Term Capital Gain ('LTCG' for short) of Rs. 35,58,612/- being income arising from sale of property situated at Flat No. 2001, 10th floor, Nishant Co-operative Housing Society, Plot No. 5, Sector-19B, Dwarka, the said property was sold/transferred for a total sale consideration of Rs. 1,36,00,000/- and the Long Term Capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iles, internal doors, bath room fittings etc, therefore, the assessee under took balance 'construction activity' spending more than 75 lacs (approximate) to complete the Villa and made it habitable in 2018 therefore, the assessee is entitled to claim the benefit, thus the addition made by the A.O. which has been sustained by the CIT(A) is bad in law. The Ld. Counsel has taken us through the orders of the Lower Authorities and sought for the intervention by the Tribunal. 6. Per contra, the Ld. Departmental Representative submitted that the Assessee has not purchased any new property or constructed any residential house after execution of the Sale Deed, since the Assessee has violated the conditions of provision under Section 54 of the Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the AO was that the new property was neither constructed "constructed within three years after the sale of property. If it is presumed that the assessee has constructed the house, then this condition is not satisfied because the construction was started before the sale of property." I have very carefully considered the facts of the case and also the written submissions of the appellant. The construction of the new flat was completed as per the assessee at the end of January 2018. The date of sale of the Dwaraka property was on 28-2-2017. The new flat which according to the appellant was acquired on 18-22014 as per the endorsement of Mr Piyush Agarwal and the fact is confirmed by the appellant about the delay in construction. Whatever May ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... another residential house or should construct a residential house within a period of three years from the date of transfer of the old house." (Underlining mine to emphasize). In view of the clear provisions of the Act, the AO's action denying benefit of deduction to the appellant under section 54 of the Act is confirmed and the appellant's ground of appeal is rejected. 8. In the present case, as per the Agreement dated 18/02/2014, the Assessee has been given full right to use, to hold, enjoy, sell, mortgage the Property to be purchased by the Assessee. On the other hand, the first party i.e. Peeyush Aggarwal will not have any right, title or interest over the said property. It is also obverted that as per the Assessee, the new Fl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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