TaxTMI 
TaxTMI 
TaxTMI 
2017 (10) TMI 819
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.... the case. 2.1. The CIT(A) erred in deleting the disallowance made u/s.54F of the Act. 2.2. The CIT(A) failed to consider that the assessee had acquired two properties one on his own name and another along with his spouse and therefore has not complied with the mandatory requirement of purchasing a residential property. 2.3. The CIT(A) ought to have appreciated that the assessee had registered the undivided share of land of the two properties on 30.09.2010 for a total consideration of Rs. 29,02,000/- and that the assessee had sold his shares only on 23.11.2011 which is more than a year prior to the date of transaction. 2.4. The CIT(A) erred in holding that the provisions are to be liberally interpreted and thus has enlarged the ....
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....r undivided share of land was dated 30/09/2010. 3.0 Aggrieved by the order of the AO, the assessee went on appeal before the Commissioner of Income Tax(Appeals) and the Ld.CIT(A) allowed the appeal of the assessee since, the construction was completed and taken possession of the property within three years from the date of the sale of the capital asset. The Ld.CIT(A) relied on the host of case laws including the decisions of this tribunal as well as decision of the jurisdictional High court. The relevant paragraph in Page No.4 of the Ld.CIT(A) order is extracted as under for the sake of convenience and clarity: 5.1 The matter is considered. The objection of the AO is that the appellant had entered into construction on 06.07.2010 and the ....
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....sment Year 2009-10 - Whether section 54F(1)(iii) stipulates that assessee shall within a period if three years after date of sale of original asset, construct a residential house and it is not specified in section that construction must begin after date of sale or original/old asset. Held, yes - Assessee sold shares and invested sale consideration in construction of house property - He claimed exemption under section 54F - Assessing Officer rejected claim for benefit under section 54F on ground that construction of house had commenced before date of sale of shares - Whether on liberal interpretation of provision, assessee could not be denied benefit of section 54F on ground that construction of house had commenced before sale of shares - He....
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....assessee is not entitled for deduction u/s.54F. On the other hand, the Ld.AR argued that the assessee has completed the construction of residential house within three years from the date of transfer of long term capital asset and eligible for deduction u/s 54F. The Ld AR further argued that the condition before one year is applicable in the case of the purchase of the asset but not for construction. The Ld.AR further argued that the intention of the legislature to give tax benefits is to encourage the investments in house properties to address the housing problems and beneficial provisions should be interpreted liberally but not in between the lines The Ld.AR submitted that the Ld.CIT(A) has rightly allowed the claim u/s.54F and there is no....
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.... 86[two years] after the date on which the transfer took place 85purchased, or has within a period of three years after that date 87[constructed, one residential house in India] (hereafter 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 a....