TaxTMI 
TaxTMI 
2014 (4) TMI 1177
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.... of the Act is justified? (ii) Whether the act on part of the Assessing Officer in rejecting the appellants claim under section 54F of the income Tax Act is justified? (iii) Whether the act on part of the Assessing Officer to make the assessment under section 144 of the Act, 1961 in exceeding their jurisdiction is legally sustainable in the eyes of law? (iv) Whether in fact and circumstances of the case, the action of the authorities below, the impugned orders Annexures P.l to P.3 are legally sustainable in the eyes of law? 5. A few facts relevant for the decision of the controversy involved, as narrated in the appeal, may be noticed. The assessee is an agriculturist and owns land in Village Bhattian,Tehsil Khanna, District Ludhiana. He also owned V2 share of 67 kanals 16/11/12 marlas of land situated near Dholewal Military complex i.e. 33 kanals 18/11/24 marlas which was acquired in the year 1955 by the Union of India through Secretary, Ministry of Defence, New Delhi. The appellant received enhanced compensation on 16.6.2006 of Rs. 15,14,211/- (Rs. 13,14,211/- plus Rs. 1,66,563/- TDS) as a co-sharer on account of acquisition of his share of land. Respondent N....
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....l 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 sub-section shall apply where- (a) the assessee, - (i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or (ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or (iii) constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset; and (b) the income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the head "Income from house property". Explanation. - For the purposes of this section, - "net consideration", in relation to the transfer of a capital asset, means the full value of the consideration received or accruing as a result of the transfer of the capital asset as reduced by any expendi....
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....be said to be unjustified in concluding that neither new construction nor the alteration/addition to the said property was made by the appellant during the relevant period. In the assessment order the AO has also discussed that even the mother of the appellant and their old servant Shri Gopal working with the appellant for more than 10 years also informed that no new house was constructed. This would further go to strengthen the findings of the AO in this regard. Further though it is contended by the learned counsel that if the AO was not satisfied with the report of the registered Valuer the matter should have been referred to the Departmental Valuer, I do not agree with the learned counsel in this regard. The above procedure is required to be taken into account when action is taken under the relevant provisions of section 55A of the Act etc. However, this was not a case where the provisions of section 55A were involved. The Valuation Report of the registered Valuer was rather filed by the appellant in support of its claim that the construction was carried out during the eligible period and that this had nothing to do with the valuation of the construction etc. Rather in view of t....
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....ntion raised by the learned AR that Inspector's report is bias, is merely an assertion without corroborating by independent evidence, hence the same does not carry any evidentiary value. The assessee appellant has failed to comply with the statutory conditions of section 54F of the Act, as the assessee failed to adduce even prima facie evidence, at any stage of proceedings, establishing the construction of residential house and eligibility of claim made under section 54F of the Act. It is admitted fact that no bills and vouchers or any evidence was produced by the appellant to justify his claim. Learned DR placed reliance on the order of Hon'ble Jurisdictional High Court, in the case of Pawan Kumar Garg v. CIT(supra) wherein it has been clearly held that onus to prove construction on residential house is on the assessee and in case of failure to discharge such onus, the assessee is not entitled for exemption under section 54F of the Act. The relevant part of the decision is reproduced hereunder:- 'Capital Gains - exemption - Investment of gains in residential house-burden on assessee to prove such investment - finding that no residential house had been constructed with....