TaxTMI 
TaxTMI 
2010 (12) TMI 1226
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.... Rs. 22,41,000/-in the case of Smt. Sita Devi Wadhwa and Rs. 30,43,578/- in the case of Mr. Satyan Mohan Wadhwa by allowing the assessee's claim of exemption u/s 54F, without considering the fact that the assessee has failed to comply with the conditions as are laid down in section 54F of the Income Tax Act, 1961. 2. The ld. CIT(A) has further erred in relying upon the CBDT Circular Nos. 471 & 672 without appreciating the fact that these circulars apply in the cases of investment in flats under Self Finance Scheme of DDA/Coop.Societies/Institutions, with similar scheme, whereas in the case of assesses allotment has been made by a private company and that also on provisional basis only." 2. During the year, the assessee in ITA No....
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.... the Act, it was a pre-requisite that the assessee within a period of one year before or two years after the date on which transfer took place, purchases or constructs, a residential property; and that the assessee was not in possession of the property which was still under construction, nor was the title of the property cleared as the assessee had not been issued any allotment letter from Shweta Estate Pvt. Ltd. The assessees were thus denied the claim of exemption u/s 54F of the Act. 5. By virtue of the impugned orders, the ld. CIT(A) reversed the assessment orders, granting exemption u/s 54F to the assessees. Aggrieved, the Department has filed these appeals before us. 6. The ld. DR has argued that the ld. CIT(A) has erred in delet....
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....and that the appeals filed by the Department, carrying no merit, be dismissed. 8. We have heard the parties and have perused the material on record. The question is as to whether the ld. CIT(A) has rightly deleted the additions made while allowing the claim of the assessees for exemption u/s 54F of the Act. 9. The undisputed facts are that the assessees applied for allotment of flats to be constructed under a Group Housing Scheme of M/s. Shweta Builders Pvt. Ltd. Capital gains arose to the assessees on sale of shares. The assessees invested the said sale proceeds of shares jointly with M/s. Shweta Estate Pvt. Ltd., for allotment of a flat, before 31.07.2006. Shweta Estate Pvt. Ltd., vide letter dated 24.11.2006, had made a provisional....
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....delivery is a formality. 10. It was in the above facts that the ld. CIT(A) observed that the benefit of section 54F of the I.T. Act was available to the present assessees also. 11. Before us, the Department has not been able to demonstrate as to how the ld. CIT(A) has committed any error in granting exemption available u/s 54F of the Act to the present assessees, in the facts discussed. It has not been demonstrated as to how the Belle Vue Scheme of Shweta Estate Pvt. Ltd. is any different from the SFS of DDA. As such, it has not been explained as to how, if at all, CBDT Circular Nos. 474 dated 15.10.86 and 672 dated 16.12.93 are not applicable to the present assessees. Benefit u/s 54F of the Act was refused to the assessees for the re....