TMI Blog2005 (8) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... own long-term capital gain of Rs. 4,64,400 on sale/purchase of 2,900 shares and this gain was claimed to be exempt under section 54F. On verification of the claim of the assessee for deduction under section 54F, the Assessing Officer found that although assessee purchased a plot from PUDA for the purposes of construction of residential house and the entire amount realized on sale of shares was claimed as exempt in respect of purchase of plot only. The Assessing Officer observed that shares were sold on 22-4-1997 and assessee filed return of income claiming exemption on 11-10-1998. Till then, there was no house constructed at the plot purchased by the assessee. Even during the course of assessment proceedings, the Assessing Officer made furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l covered area being 150 sq. ft. and photographs were also taken. The Addl. CIT, Range-I, Ludhiana vide his letter dated 23-3-2001 addressed to Commissioner, Municipal Corporation, Ludhiana asked him to get the enquiries made on the following two points:- "(i) Whether on this plot, an unauthorized building/house was constructed during the period Match, 1999 to Mav 2000 which was demolished subsequently. (ii) Whether two small rooms presently standing on this plot were constructed about two-three weeks ago or up to two years ago as claimed." 4. The report of Shri Kashmira Singh, XEN, Zone-B, M.C. Ludhiana dated 26-3-2001 is as under:- "Plot No. 1021, Urban Estate, Phase-II, Jamalpur - Site Seen, Main gate was locked, enquiry have bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the inference that actually the assessee did not construct any house as he was supposed to construct within a period of three years of the transfer of the shares and he accordingly, disallowed the claim of the assessee. 6. In appeal before the CIT(A), assessee submitted that assessee constructed two rooms there. It was residential house and the ld. CIT(A) taking the clue from the letters of the Municipal Commissioner and PUDA authorities drew the inference that the assessee constructed two small rooms there which constituted an independent dwelling unit and relying upon the dictionary meaning of residence from Strouds Judicial Dictionary the CIT(A) allowed deduction under section 54F. While allowing the claim of the assessee, the CIT(A) p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer by the Inspector and different authorities like Municipal Corporation and PUDA where the construction of two small rooms has been accepted to have been constructed recently. Therefore, assessee was entitled for deduction under section 54F in respect of the construction so made by him on the plot allotted by PUDA. 8. We have given our careful consideration to the rival contentions and perused the orders of the authorities below. We find that assessee has shown capital gain of Rs. 4,64,400 and claimed it as exempt under section 54F by purchasing a plot from PUDA. Now, the issue before us is to examine whether the assessee has actually constructed any residential house within the meaning, object and time allowed under section 54F. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee to prove by way of evidence to justify his claim for deduction. In this case, onus was not discharged by the assessee in view of the fact that assessee could not furnish any evidence to prove the fact that there was any construction before 22-4-2000. Assessee's contention that amount has been withdrawn on the dates mentioned above does not provide any cogent evidence so that it can be inferred that actually there was any house constructed by the assessee as these withdrawals are in cash and some vouchers for purchase of cement and bricks have been shown in the paper book and all these vouchers are in cash. Merely producing of the vouchers all in cash for purchase of cement and bricks does not justify the claim of the assessee that a re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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