2015 (4) TMI 939

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....n holding that exemption of Rs. 15,56,056/- (Rs.17,50,000/- (-) Rs. 1,93,944/-) claimed u/s 54 was not allowable to the assessee. 2. During hearing we have heard Shri S.S. Sheetal, learned counsel for the assessee, and Shri R.A. Verma, learned Senior DR. The crux of arguments on behalf of the assessee is that both the ground are inter-connected and the facts have not been appreciated in proper perspective by the Assessing Officer/CIT(A). It was also pleaded that the exemption claimed was in the fixed format of the Department and the later communication addressed to the authorities was not considered. Our attention was invited to page 16 of the paper book along with the administrative instructions of CBDT for guidance to the Income Tax Of....

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....d that the market value considered by the Sub-Registrar is Rs. 26,97,000/-. The Assessing Officer opined that there is a difference of Rs. 8,97,000/- between the market value and the amount declared by the assessee for working out the capital gain. As per the Revenue, no specific explanation was given by the assessee. The assessee claimed exemption of capital gains by mentioning section 54B/54D/54G. The main plea of the Revenue is that correct section for claiming exemption for capital gains was not mentioned in the return. However, the plea of the assessee is that since it was a fixed format, the assessee was not wise enough to amend the same and also for the wrong doing of the counsel, the assessee should not be penalised. It was also ple....

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.... It is pertinent to mention here that even the profit arising out of commercial assets held for more than 3 years can be claimed u/s 54F by utilising the same for acquisition/construction of residential house because the language used in sub-section (1) of section 54F is "capital gain" from the transfer of any long term capital asset which may be residential as well as commercial. The only requirement is investment within the specified time in a residential house (new asset) subject to certain conditions which are enumerated in the section itself. Even in sub-section (2) the language used is "original asset" meaning thereby no differentiation has been made between the residential or commercial so far as transfer/sale, arising out of, origin....