TaxTMI 
TaxTMI 
TaxTMI 
2015 (9) TMI 550
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....ery and M/s Car Gallery, which is exempt u/s 10(2A) of the Income-tax Act, 1961 ["the Act"] and income from other sources. Return for assessment year 2007-08 was filed on 30/11/2007 declaring a total income of Rs. 17,17,194. The total income of the assessee was assessed by the AO at Rs. 28,47,194 as against declared income of Rs. 17,17,194. The only issue that arises for consideration in this appeal is regarding claim made by the assessee for deduction u/s 54F of the Act at Rs. 34,34,640 which was restricted by the Revenue authorities to Rs. 23, 04,640. 3. During the previous year relevant to asst. year 2007-08, the assessee sold immovable property being vacant site in HSR layout, Bangalore for a total sale consideration of Rs. 36 lakhs. T....
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....Rs. 1,51,875 Service tax on Deposit : Rs. 28,042 Legal Fees : Rs. 10,000 Rs.4,57,292 GRAND TOTAL Rs.52,60,292 (c) Registered Sale deed by the developer, Esperanza by UKN dated 25/6/2008 wherein undivided share of land, residential apartment and 2 covered car parks proportionate share in common area was sold for a sale consideration of Rs. 22,05,000/-. 5. The Assessing Officer was of the view that the value shown in the registered sale deed can be considered as investment in a residential house for allowing exemption u/s 54F of the Act. The value as per registered sale deed was Rs. 22,05,000. The AO allowed registration charges and stamp duty and thus arrived at....
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....and the details of the cheque payments are given in the form of a statement which is placed at page-11 of the Assessee's paper book. The Assessee pointed out before the CIT(A) that it was a common practice in real estate sector that the agreement between the developer and the purchaser of flat contains, besides the basic cost of undivided share of land and value of apartment, car park and undivided interest in other common areas, as these are regarded as immovable property which can be conveyed only through a registered document. The other amenities which make the residential house complete in all respects, have to be incurred by the purchaser of flat. These amenities need not be included in the registered document. The value of these ameni....
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....d sale deed. The CIT(A) was, therefore, of the view that the explanation of the Assessee that the registered sale deed contains only basic cost of flat is not borne out of the documents between the parties. The confirmation of the developer only refers to "basic cost". According to the CIT(A) therefore, the agreement between the parties was not acted upon. That there was no basis for the claim of the Assessee that there was "basic cost" and "upgradation cost" as the said claim is not supported by any document. According to CIT(A), the apartment replete with all its features existing as on 23.6.2008 constituted an item of immovable property in totality, and it was registered as such before the Sub-Registrar. The description of the property r....
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...., and the assessee has, within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house in India] (hereinafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,- (a) if the cost of the new asset is not less than the net consideration in respect of the original 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 ga....
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....d Article IV of the Agreement gives a list of other charges to be paid by the Assessee. 15. The next document is the registered sale deed dated 25.6.2008 which is for a sum of Rs. 22,05,000 which is towards undivided share of land and flat together with 2 covered car parks. 16. The third document is the letter dated 18.6.2008 by the developer which refers to a sum of Rs. 52,60,292 as the total cost of the property paid by the Assessee. This letter refers to the basic cost of the property as Rs. 22,05,000. 2 Car Parks have been valued at Rs. 3,00,000. To this extent, there appears to be a contradiction between the registered sale deed and this letter of the builder. The other charges mentioned in this letter, in our view, cannot be regarde....