TaxTMI 
TaxTMI 
2017 (7) TMI 353
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....ective ground raised in the appeal of the assessee is that the ld. CIT(A) ought not to have restricted the exemption under section 54 of the Income Tax Act, 1961 ["Act" in short]. On the other hand, the Revenue has raised the effective ground that the ld. CIT(A) has erred in directing the Assessing Officer to allow deduction under section 54 of the Act of Rs..65,08,766/-. 2. Brief facts of the case are that the assessee is an individual, earning income from salary and other sources and filed his return admitting total income of Rs..89,07,595/- consisting income from salary at Rs..36,70,220/-, income from house property at Rs..6,91,047/-, Rs..46,08,119/- from long term capital gains and income from other sources at Rs..38,209/- and claimed ....
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....essee has entered into construction agreement and paid first instalment of the cost of construction and got title to the property, such allotment should be treated as cost of construction for the purpose of capital gains, the ld. CIT(A) was not legally correct to deny full benefit under section 54 of the Act and by relying on various case law filed in the form of paper book, the ld. Counsel for the assessee has pleaded that the entire claim of exemption under section 54 of the Act should be allowed. 5. On the other hand, the ld. DR has submitted that when the assessee has not deposited the unutilized amount of Rs..89,66,339/- in the Capital Gains Account Scheme within the time allowed under section 139(1) of the Act, the ld. CIT(A) was not....
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.... has observed that the claim of assessee under section 54 of the Act has to be rejected at threshold. It is observed by the Assessing Officer that to avail exemption under section 54 of the Act, there should be a habitable residential House Property in existence either by purchase construction before the due date of furnishing the return of income under section 139(1) of the Act. Otherwise, the amount of capital gains should be deposited in an account with the specified bank under the Capital Gains Accounts Scheme, 1988 by that date. As the conditionalities enumerated under section 54(2) of the Act, such as the assessee has neither deposited the amount Capital Gains Accounts Scheme nor did he purchased/ constructed a house property before t....
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.... The assessee furnished copy of the above documents before the authorities below as well as filed before the Tribunal. We have perused various documents furnished in the form of paper book and while doing so, as per client ledger summary report, the assessee has paid the following amount to the builder: Date Amount Details 07.01.2011 3,00,000.00 Cheque No. 789583; Citi Bank 04.02.2011 28,17,524.00 DD No. 813473; ING Vysya Bank 08.12.2011 10,39,175.00 DD No. 467246; ING Vysya Bank 16.04.2012 2,86,860.00 DD No. 009271; ING Vysya Bank 03.05.2012 10,39,175.00 DD No. 794591; ING Vysya Bank 10.07.2012 10,39,175.00 DD No. 794918; ING Vysya Bank 07.11.2012 10,39,175.00 DD No. 009754; HDFC 21.01.2013 10,41,225.0....
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....ith judicial decision of Delhi High Court in the case of CIT vs. R.L. Sood 245 ITR 727 (Del) were the date of agreement to purchase should be taken as the date of purchase. On applying the ratio to current circumstances, the assessee entered into construction agreement and agreement for land purchase on 03.02.2011, which was not at all disputed by the Department, very much before provisions of section 139(1) of the Act. In the case of Jagtar Singh Chawla of Punjab and Haryana High Court in ITA No.71 of 2012, dated 20.03.2013 the assessee has paid substantial amount for purchase of residential property before the extended due date of filing of return and the assessee was eligible for exemption and not liable to pay any capital gain tax. 6.4....