2016 (9) TMI 949

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....he Assessing Officer as well as honorable commissioner appeal erred in considering the value of House property as Rs. 6,51,000/- against the actual consideration of Rs. 32,41,046/- which is against the facts and circumstances of the case and against the Income Tax Act Circular No.667, dated 18.10.1993 specifies following i. Section 54 and 54F provide for a deduction in cases where an Assessee has, within a period of one year before or two years after the date on which the transfer of a capital asset takes place, purchases, or has within a period of three years after the date on which the transfer of a capital asset takes place, purchases or has within a period of three years after that date constructed, a residential house. The qua....

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.... by not considering the section 27(1) of income tax act and disallowed investment in house property to the extent of 2/3rd of the amount as per section 27(1). As per section 27(1) an individual who transfers otherwise than for adequate consideration any house property to his or her spouse, not being a transfer in connection with an agreement to live apart, or to a minor child not being a married daughter, shall be deemed to be the owner of the house property so transferred. Therefore dividing the value in 3 part is against the law and income tax act and therefore same should be allowed to the extent of 2/3rd of the amount. 4. The Assessing Officer as well as commissioner of appeal erred in considering Rs. 3.2 lacs as deemed dividen....

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....ts and commission agents. The assessee has shown income from salary, business and other sources. The assessee shown long term capital gains on sale of unquoted shares of Rs. 14,60,000/- and claimed the same as exempted u/s.54F of the Act. The Assessing Officer was in doubt in connection with the sale prices of 500 shares of F. Bock & Co. because the nature of the credit of Rs. 17,00,000/- was shown by the assessee. As per the agreement dated 18.08.2005 the purchase price relates to the purchase of open land and pricing relating to the house property is Rs. 6,51,786/-. The purchases is in the name of the assessee, his wife and son and the Assessing Officer delete the 1/3rd cost price of the house property for the for deduction u/s. 54F of th....

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....IT(A) has only considered the cost of construction for the purpose of deduction u/s.54F of the Act to the extent of his 1/3rd shares to the tune of Rs. 6,59,786/- i.e. Rs. 1,81,760/- 6. Now the circular No. 667, dated 18.10.1993 is quite clear and is reproduced as under:- i. Section 54 and 54F provide for a deduction in cases where an Assessee has, within a period of one year before or two years after the date on which the transfer of a capital asset takes place, purchases, or has within a period of three years after the date on which the transfer of a capital asset takes place, purchases or has within a period of three years after that date constructed, a residential house. The quantum of deduction is itself dependent upon the ....