AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2015 (12) TMI 132
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....the date of development agreement as the point of time for accrual of Capital Gains while the assessee has offered the Capital Gains for taxation based on factual accrual of gains in the respective years. 3. The Learned Commissioner held in his finding that the Assessing Officer is within his jurisdiction for invoking the provisions of Section 153C of the Income Tax Act. 4. The Commissioner of Income Tax (Appeals) erred in denying exemption under Section 54F of the Income Tax Act, while the Appellant is eligible for the same. 5. The Learned CIT Appeals erred in his finding and working that the Capital Gains arising on the sale of developed plots is to be assessed as short term gains while it has to be assessed as Long term Gains si....
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....s. 3.86 Crores. while doing so, AO also denied the claim of 54F made by assessee in investment of houses. 3. Before the Ld. CIT(A), assessee contested the entire computation of capital gains, the year of taxability and denial of deduction u/s. 54F. Assessee made detailed submissions, as summarized by Ld. CIT(A) in para 7 of the order. There is no need to extract the same thing. Ld. CIT(A) remanded the matter to the AO for necessary examination of some of the contentions and after receipt of remand report dt. 12-12-2013, an opportunity was given to assessee. Rejoinder was submitted by assessee on 24-12-2013 which was extracted by the Ld. CIT(A) in para 8.2 of the order. Assessee also raised additional ground before the Ld. CIT(A) which Ld....
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.... right earnst by the developer and work has commenced. Thus, as assessee has handed over the land to the developers and the developer had clearly accepted their willingness to perform and do the development work and had proceeded accordingly, the capital gains arise on the date of development agreement in terms of Section 45 r.w.s. 2(47)(v). The facts are similar to the facts in the case of Potla Nageswara Rao Vs. DCIT [365 ITR 249 (AP)] wherein Hon'ble Jurisdictional High Court analysed and upheld the levy of capital gains in the year of development agreement. It was held: "On March 7, 2003, the assessee entered into an agreement with a developer and the plan of the building was approved on March 31, 2003. These dates fell in the pr....
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....estment in houses are eligible for deduction u/s. 54F as the income itself is deemed income. Therefore, the entire consideration receivable was deemed to have been delivered to assessee and invested in house. Even though, assessee has claimed deduction u/s. 54F on one house, House No. 60 in fact, assessee was eligible for claiming the deduction on three houses, House No. 14, House No. 59 and House No. 60 as they are to be considered as a house, following the co-ordinate Bench decision of ITAT in the case of Vittal Krishna Conjeevaram Vs. ITO [144 ITD 325 (Hyd)] following the principles laid down by the Hon'ble Karnataka High Court in the case of CIT Vs. K.G.Rukmini Amma [331 ITR 211]. 5.1. As seen from the order of AO, the AO denied ....
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...., whatever gains is being taxed in this year as Long Term Capital Gain, the same is eligible for deduction u/s. 54F as proportionate consideration stands invested in the house. Provisions of Section 54F(3) are as under: "Sec. 54F (1)............................................ (2)............................................ (3) Where the new asset is transferred within a period of three years from the date of its purchase or, as the case may be, its construction, the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of such new asset as provided in clause (a) or, as the case may be, clause (b), of sub-section (1) shall be deemed to be income chargeable under....
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....igible deduction u/s. 54F to assessee. The ground is allowed for statistical purposes. 6. Ground Nos. 5 & 6 pertain to direction of the CIT(A) to assess the development of plots as Short Term Capital Gain on sale of plots. 6.1. As briefly stated above, Ld. CIT(A) while allowing assessee's appeal partly and working computation of capital gain, however went on to determine the Long Term Capital Gain and Short Term Capital Gain in other assessment years, which are not before him. In fact, we are not even aware whether the AO undertaken any proceedings in those years. Therefore, the order of CIT(A) pre-judges the issue and CIT(A) is not empowered to traverse beyond the year under consideration in appeal. In fact, he has virtually fixed ho....