Reversal of input tax credit in proportion to exempt supply: specificity of show-cause notice required; order set aside, fresh proceedings allowed wit...
Benami transaction and beneficial ownership: documentary and circumstantial evidence show payors were true beneficiaries, resulting in PBPTA consequen...
Exemption under section 54 was denied by the Revenue by treating the capital gains as taxable in the relevant year on the premise that the new residential house was not constructed. The appellate authority held that the statute allows a three-year period from transfer for construction, which had not expired in the year under appeal, and the assessee's purchase of land and ongoing construction/investment in the new residential house was undisputed, with completion evidenced subsequently. Accordingly, no addition to capital gains could be made in the year under appeal and the denial of section 54 relief was rejected; the Revenue's appeal was dismissed. - ITAT
Exemption under section 54 was denied by the Revenue by treating the capital gains as taxable in the relevant year on the premise that the new residential house was not constructed. The appellate authority held that the statute allows a three-year period from transfer for construction, which had not expired in the year under appeal, and the assessee's purchase of land and ongoing construction/investment in the new residential house was undisputed, with completion evidenced subsequently. Accordingly, no addition to capital gains could be made in the year under appeal and the denial of section 54 relief was rejected; the Revenue's appeal was dismissed. - ITAT
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