TaxTMI 
TaxTMI 
2015 (3) TMI 485
X X X X Extracts X X X X
X X X X Extracts X X X X
....he following additions / disallowances :- i) Disallowance of claim for exemption u/s.54F of the Act : Rs. 88,98,970. ii) Addition of income accrued on investments not offered to tax : Rs. 9,26,284. 2.2 Aggrieved by the order of assessment for Assessment Year 2009-10 dt.16.12.2011, the assessee preferred an appeal before the CIT (Appeals) - III, Bangalore. The learned CIT(A) disposed off the assessee's appeal vide the impugned order dt.16.9.2013, dismissing the assessee's appeal on both the issues listed at (i) and (ii) of para 2.1 (supra). 3. Aggrieved by the order of the CIT (Appeals) - III, Bangalore for Assessment Year 2009-10 dt.16.9.2013, the assessee is in appeal before this Tribunal raising the following grounds :- "1. The CIT (Appeals) - III, Bangalore has erred in confirming the disallowances to the admitted income by the assessing authority by not deleting such additions in total. 2. Without prejudice, the CIT (Appeals) - III, Bangalore, ought not to have rejected the claim for deduction of Rs. 88,98,970 under Section 54F of the Income Tax Act, in respect of purchase of residential property by the appellant. 3. The CIT (Appeals) - III, Bangalore ought to ha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Enterprises Pvt. Ltd.. Submitting that since payment of a substantial amount in terms of the Agreement indicated that he has acquired substantial domain over the new flat one year before the sale of the long term capital asset on 21.8.2008, the assessee contended that exemption under Section 54F of the Act cannot be denied to him for failure on the part of the Brigade Enterprises Pvt. Ltd. to hand over possession and register the flat in his name within a period of two years from the sale of the capital asset. The assessee cited judicial decisions to support his claim. 5.2.2 The learned CIT(A) on examination of the assessee's submission, being of the view that the judicial decisions cited were factually and legally distinguishable from the case on hand, proceeded to deny the assessee's claim for exemption u/s.54F of the Act, holding as under at para 3.3 and 3.4 of the impugned order :- " This is not merely a case where the property has not been registered within the time limit allowed u/s.54F. Even the incidence of entering into the purchase agreement for acquisition of a residential house is well before the period of 1 year from the date of sale of the long term capita....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt had entered into an agreement for purchase of residential flat in Brigade Gateway promoted and developed by Brigade Enterprises Ltd., Bangalore, first in the name of his daughter Mrs. Anu Joseph, vide purchase agreement dt.30.12.2006 for a total consideration of Rs. 93,71,456. The purchase consideration for the purchase of flat is entirely paid by the appellant himself as per schedule of payment in terms of the agreement, out of the amount realized from sale of shares. The agreement for purchase of property was transferred to the name of M. George Joseph, the appellant vide letter dt.18 March 2009 issued by the Builder Company i.e. Brigade Enterprises Ltd.. Therefore, the transfer of agreement to purchase the residential property to the name of the appellant is well before the end of previous year relevant to A.Y. 2009-10 which is the subject matter of the appeal. The appellant paid Rs. 88,98,970 commencing form 23.11.2006 till 3.6.2008 and paid balance consideration of Rs. 4,72,486 on 28.3.2011, and the absolute sale deed dt.28.3.2011 is registered in the name of appellant by paying stamp duty of Rs. 348,400 and registration fee and other charges of Rs. 52,540. Thus the total ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e heard the rival contentions and perused and carefully considered the material on record; including the judicial decisions cited and placed reliance upon. The facts of the matter as emanate from the record are that the assessee sold shares on 21.8.2008 resulting in capital gains of Rs. 28,27,33,919 against which exemption of Rs. 50,00,000 was claimed under Section 54EC of the Act for investment in REC Bonds and Rs. 88,98,970 under Section 54F of the Act for having purchased a residential flat C-605, 'C' Wing Corona, Brigade Gateway, Bangalore from M/s. Brigade Enterprises Pvt. Ltd. vide Agreement dt.30.12.2006. The total investment in the purchase of this property was Rs. 97,72,396 and the break-up of these payments as furnished by the assessee are as under :- S.No. Date Amount Rs. S.No. Date Amount Rs. 1. 23.11.2006 12,65,000 2. 24.11.2006 1,68,360 3. 27.12.2006 7,49,700 4. 24.3.2006 7,88,630 5. 02.05.2007 8,45,581 6. 9.7.2007 8,52,309 7. 11.9.2007 8,45,878 8. 6.11.2007 8,45,878 9. 21.1.2008 8,45,878 10 14.3.2008 8,45,878 11. 3.6.2008 8,45,878 12. 28.3.2011 4,72,4386 13. 28.3.2011 4,00,940 Total 97,72,396 5.5.2 Accordin....