2014 (12) TMI 215

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.... the benefit u/s 54F of Rs. 43,27,657/-. The grounds of appeal taken by the assessee read as under:-     "1. That the addition of Rs. 43,27,657/- on account of disallowance of exemption claimed u/s 54F is illegal and unjustified and, therefore, ought to be deleted.     2. That disallowance or exemption under section 54F on the ground that the assessee already owned two houses as on the date of purchase of new house whereas the said two houses were firstly owned by the Hindu Undivided Family, not by the assessee in his individual capacity and secondly, one of the said house was admittedly non-residential house, is illegal and unjustified and, therefore, exemption under section 54F ought to be allowed to the assessee.     3. That disallowance of exemption under section 54F on the ground that new house situate at Simrauli, Hapur is not residential house, is illegal and unjustified and, therefore, exemption under section 54F ought to be allowed to the assessee.     4. That alternatively, even otherwise disallowance of exemption under section 54F is illegal and unjustified because assessee had purchased new resident....

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....nal asset, the whole of such capital gain shall not be charged under section 45 ;         (b) if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the net consideration, shall not be charged under section 45:     [Provided that nothing contained in this sub-section shall apply where-         (a) the assessee,-             (i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or             (ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or             (iii) constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset; a....

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....hat it was a vacant plot with a room, pump room and toilet thereon and as per valuation report, the covered area was 53 sq.mtr. and the valuation of the construction was adopted by the valuer as Rs. 1,33,000/-. Further we also find that the Assessing Officer himself has visited the site to verify the existence of residential building. The assessee claimed that two properties were belonging to HUF and these were acquired by the father of the assessee which was bequeathed in favour of the HUF by way of Will. Before us, it was also canvassed that this assessment has been completed in a very short period between 13.12.2010 to 29.12.2010. Therefore, assessee could not get the benefit of effective and proper hearing. He pleaded that this assessment was made in haste. We also find that the order of the Assessing Officer has been made u/s 143(3)/144 of the Income-tax Act, 1961. It is also canvassed before us that the Income-tax Inspector as well as Assessing Officer has carried out inspection at the site, but the findings of such visit have not been confronted with the assessee which clearly shows that there was inadequate opportunity provided to the assessee. The ld. AR has tried to draw ....

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....e assessee towards unexplained cash credits as well as unexplained liability. Further penalty proceedings for violation of provisions u/ s 269SS of the I.T. Act, 1961 by accepting loan of more than Rs. 20,000/ - in cash are also being initiated separately. Penalty proceedings for concealment of income and its particulars u/s 271(1) (c) of the Income Tax Act, 1961 are being initiated separately.     [Addition: Rs. 10,00,000/-]     In the case Sh. Dushyant Tyagi Rs. 5,00,000/- are mentioned in balance sheet and annexure 'B' of the audit report as Unsecured loans but neither Sh. Dushyant Tyagi was produced for examination nor creditworthiness proved. Assessee has not even furnished whether this loan/ advance has been taken/ accepted by cheque or by cash. Affidavit filed on 27-12-2010 is written in English and signature of lender Sh. Dushyant Tyagi in Hindi reveals he does not know for what purpose this affidavit is being made. There are certain chances of misguiding him. Accordingly Rs. 5,00,000/ - are added in the income of the assessee towards unexplained cash credits as well as unexplained liability Further penalty proceedings for violati....