9911796707
TMI Blog2025 (4) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... return of income declaring total income at Nil. According to Assessing Officer, an information gathered that the assessee has sold a plot comprising 50R at Khadgaon, Latur for a consideration of Rs. 17,26,000/- on 18.01.2007. A notice u/s 148 was issued asking the assessee to file copy of return of income, bank account extracts and working of capital gain. According to Assessing Officer, there was no response from the assessee but an Authorized Representative appeared before the Assessing Officer in response to the notice u/s 143(2) of the Act. According to Assessing Officer, the assessee claimed deduction u/s 54F of the Act. According to Assessing Officer, on perusal of the details submitted by the assessee that the assessee purchased a p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 are related to addition of Rs. 11,95,150/-. The AO in his assessment order found that the appellant had 3 properties in FY 06-07 (date of sale being 18.01.17 and 22.01.17) and claimed deduction u/s 54F of the Act on the ground that he had constructed a house utilising the sale proceeds of the properties sold. With respect to that new house, the AO observed that, i) The plot was purchased on 09/04/2003. ii) The plan was sanctioned on 30/06/2005. iii) The permission for construction was granted on 29.06.2005. iv) no record as to when the house construction was completed as completion certificate was not produced. 4.2 The AO held that, "Thus, there is no liberty to construct the house prior to the date of sale under the Act. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the claim the assessee has produced before the learned Income Tax Officer, Ward-1, Latur the copy of valuation report which was already obtained by the assessee from Shri S. V. Barbade, who is the approved Valuer. The appellant further relied on certain judicial pronouncements in support of his claim. All such cases were perused and found that the facts of those cases were very much distinguishable from that of the present case. 4.4 The facts of the case, submissions of the appellant and findings of AO in the assessment order have been considered. The Sec.54F is very clear in saying that the assessee has to construct a new residential house within 3 years from the date of transfer of original asset or purchase a new house one year be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and AO was correct in holding that the appellant had constructed the house even before the sale of properties on which deduction u/s 54F was claimed. Since, the deduction claimed u/s 54F by the appellant was rightly rejected by the AO and the grounds of appeal in this regard are rejected." 5. Heard both the parties and perused the material on record including paper book containing pages 1 to 9. We note that the assessee claimed deduction u/s 54F of the Act claiming that he had constructed a house utilizing the sale proceeds of three properties, which is evident from para no.3 of the assessment order. The Assessing Officer denied the said deduction by observing that the assessee is not entitled to claim of deduction u/s 54F of the Act as t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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