TaxTMI 
TaxTMI 
2016 (4) TMI 216
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....transfer of original assets and income from two properties were chargeable to tax under the head income from house property? 2. Is not the finding of the Tribunal bad especially when the assessee case is hit by clauses (a)(1) and (b) of the proviso to Section 54F a d therefore no deduction can be granted u/s 54F?" 2. We have heard Mr.M.Swaminathan, learned Standing Counsel for the Department and Dr.Anita Sumanth, learned counsel appearing for the respondent/assessee. 3. The Respondent/Assessee filed his Return of Income on 4.11.2009 for the Assessment Year 2009-10. The case was selected for scrutiny and notice was issued. 4. It was found that the assessee made cash deposits of Rs. 66,50,000/- at Indian Bank at various date....
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....thin the substantive part of Section 54F(1), he is entitled to the deduction. If the case is covered by the proviso to Section 54F of the Act, the assessee is not entitled to the benefit of the substantive part of sub-section (1) of Section 54F. 9. Under the substantive part of Section 54F(1), the capital gain arising from the transfer of any long term capital asset, not being a residential house, shall not be subjected to the taxation provisions, if the assessee had within the period of one year before or two years after the date on which the transfer took place, purchased a residential house. Alternatively he should have constructed one residential house in India within a period of three years. If these conditions are satisfied, the ca....
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....r 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 gain the same proportion as the cost of the new asset bears to the net consideration, shall not be charged under section 45: [Provided that nothing contained in this subsection shall apply where- (a) the as....
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....d in clause (a)(iii) together with clause (b) should be satisfied. 14. It is not a case of the Department that the case of the assessee would fall under any one of the three sub-clauses of clause (a) together with clause (b). The case of the Department is that the assessee had income from a commercial property that was treated as income from house property. To be precise, the assessee had one residential house in Chennai, one commercial flat in Chennai, from out of both of which, he was deriving a total income of Rs. 4,25,131/-. He also had a land in Neelankarai which was sold and a house property was purchased in Kodaikanal. 15. Under Section 22 of the Act, any income from any buildings, irrespective of which the use which has to be ....