TaxTMI 
TaxTMI 
2018 (9) TMI 282
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.... is raised in Grounds No. 1 & 2. The relevant facts of the case apropos this issue are that the assessee is an individual, who is engaged in the business of trading in the name and style of her proprietary concern M/s. Arizona Company. The return of income for the year under consideration was filed by her on 07.03.2014 declaring total income at 'NIL'. In the said return, long-term capital gain (without indexation) was shown by the assessee at Rs. 78,39,171/- and the same was claimed to be fully exempt from tax. The assessee was the co-owner of flat No.9C of the 9th Floor, Golf Towers, 9, Prince Golam Muhammad Shah Road, Kolkata-700 095, which was sold for a sale consideration of Rs. 1 crore. During the course of assessment proceedings, the ....
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....as no registered agreement for sale executed by the assessee for the said flat and there was only the Provisional Allotment Letter by the concerned developer M/s. K.R. Mali Builders & Developers Pvt. Limited. He further noted that the assessee as per the said provisional allotment letter was not having any right, title, interest or lien of any nature whatsoever in the said flat until the agreement for sale was executed and registered with the Office of the sub-Registrar of Assurances. He also found that the said flat had not come to the possession of the assessee even after the expiry of the cut off period prescribed in section 54. Accordingly the claim of the assessee for exemption under section 54 was disallowed by the Assessing Officer a....
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....00/-, and that it was also seen that the assessee had paid a token amount of Rs,42,14,OOO/- and Service Tax of Rs. 1,30,214/- totaling to Rs,43,44,214/- for the purpose of booking the said flat. The token booking amount of Rs,43,44,214/- was paid by the assessee in two instalments - Rs. 11,00,000/- on 16.03.2013 and Rs. 32,44,213/- on 10.04.2013. The payment schedule mentions the phases for payment of the balance amount of Rs. 63, 21,000/-(excluding Service Tax). 2. I find that the Ld. AO has quite correctly stated that as per the provisions of Section 54 of the LT. Act, 1961, exemption is admissible on profits on sale of property used for residence only if the following primary conditions are fulfilled: a) That the assessee has purch....
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....appellant stands dismissed". 4. We have heard the arguments of both the sides and also perused the relevant material available on record. Although the ld. Counsel for the assessee has submitted that the investment in purchase of new flat was made by the Assessing Officer on 16.04.2013, i.e. within the period stipulated in the relevant provision, we find that the claim of the assessee for exemption under section 54 was disallowed by the authorities below mainly on the ground that the claim of the assessee of having purchased the new flat was not supported by any registered agreement for sale executed by the assessee with the concerned developer. As noted by them, the said claim was based merely on the provisional allotment letter issued by....
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....w appropriate relief to the assessee on such verification. 6. As regards the issue involved in Ground No. 4 relating to the disallowance of Rs. 46,994/- made by the Assessing Officer and confirmed by the ld. CIT(Appeals) out of promotion expenses, it is observed that the total expenditure of Rs. 1,08,328/- claimed by the assessee towards Exhibition Expenses was examined by the Assessing Officer during the course of assessment proceedings. On such examination, he found that the claim of the assessee for exhibition expense to the extent of Rs. 46,994/- was not duly supported by the relevant documentary evidence. He, therefore, disallowed the said expenses to the extent of Rs. 46,994/-. During the course of appellate proceedings before the ld....