TaxTMI 
TaxTMI 
2016 (1) TMI 903
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....s raised the followings grounds of appeals:- ''2.1.The Id CIT(A) erred in holding that the assessee is entitled, for deduction u/s 54 2.2. The Id CIT(A) erred in stating that the assessee had settled the property in favour of his daughter in the subsequent year and hence the issue of disallowance of deduction u/s 54 should be dealt with in that year which is factually incorrect. The settlement was made in the same assessment year. 2.3. The Id CIT(A) ought to have appreciated the fact that the action of the assessee to acquire the property in his name and immediately settling it in favour of his daughter is not much distinct from giving the sale proceeds to his daughter and .she making the investment in her name, i....
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....ty and Business income offered under of Sec 44AD of the Income Tax Act. The main issue being the long term capital gains on sale of residential property after considering the indexed cost of acquisition <39,52,254/-. In the same financial year, the assessee purchased residential property on 24.08.2010 and claimed exemption u/s.54 of the Act. On verification of the Encumbrance Certificate from Sub-Registrar office the assessee has settled the same residential property in favour of his daughter vide registered settlement deed No.1225 dated 1st November, 2010. It was submitted in compliance to show cause notice that the Capital gains shall arise only when the settle i.e. daughter of the assessee sells the property within a period of three year....
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.... appellants claim for deduction under section 54. As per Section 54, the Capital Gains arises on sale of House Property, if invested in another Property the deduction of 54 shall be allowed. If the new property is transferred within three years of acquisition, the gain chargeable shall be worked out by taking cost as NIL in the year of sale of new property. The assessing officer was not right in rejecting the claim made under Section 54. Without prejudice to the above submission. The Property which was acquired new was settled in favour of his daughter by means of settlement deed, out of love and affection. This should not be treated as Transfer. The assessing officer contended that, the Section 47(iii) exempts on....
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....appeal. Aggrieved by the order of the Commissioner of Income Tax (Appeals) the Revenue filed an appeal before the Tribunal. 5. The ld. Departmental Representative has clarified that the issue of settlement deed and the purchase of property failing in the same assessment year and therefore the provisions are controvert by the assessee and exemption be denied and relied on the Bombay High Court decision in the case of Prakash vs. ITO (2008) 173 Taxman 311 and pleaded for set aside of the Commissioner of Income Tax (Appeals) order and uphold the order of the Assessing Officer. 6. On the other hand, the ld. Authorised Representative has filed paper book and furnished detail submission on the issues dealt by the Assessing Officer alongwith....
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....val submissions of both the parties, perused the material on record and orders of the lower authorities and judicial decisions cited. The assessee being a father has settled the property in favour of his daughter out of love and affection without any consideration as referred at para 3 of settlement deed. ''In consideration of natural love and affection of the Settlor towards the settle herein, who being his daughter, the Settlor doth hereby transfer and assign his entire right, title and interest over the said property, which being 39.2115% undivided share in all that piece and parcel of land and building having twin door numbers namely (i) New door No.8, Old door No.10,Arunachala Achari Street and (ii) door No.8, Main Sahib II St....