2018 (11) TMI 322

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....the assessee, an individual, filed her return of income for the impugned assessment year on 30th September 2011, declaring total income of Rs. 9,62,339. During the assessment proceedings, the Assessing Officer while verifying the return of income filed by the assessee found that the assessee in the relevant previous year has sold a flat jointly held with others and declared her share of capital gain at Rs. 55,82,426. However, she claimed deduction of the capital gain under section 54 of the Act towards investment made of Rs. 98,90,358, in purchase of a new flat. After calling for necessary details and examining them, the Assessing Officer noted that the investment of Rs. 98,90,358, made in purchase of new house included housing loan of Rs. ....

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....k Account showing disbursement of housing loan. The learned Authorised Representative submitted, by the time the housing loan was disbursed, consideration for new house has already been paid. In this context, the assessee drew my attention to Page-20 of the paper book where source of fund for financing the purchase of new house has been mentioned indicating payment of Rs. 75 lakh from sale proceed of the original asset. Thus, the learned Authorised Representative submitted, the housing loan taken from Citi Bank cannot be linked to the purchase of new house. Without prejudice to the aforesaid submission, the learned Authorised Representative submitted, even utilisation of housing loan in purchase of new house will not disentitle the assessee....

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....the source of fund utilised in purchase of new house. From the material placed before me, it appears, the assessee along with others had purchased a new flat vide agreement dated 23rd September 2010. From the copy of the said agreement placed in the paper book it also appears that the total sale consideration of Rs. 2.50 crore was also paid to the vendors before or at the time of execution of the agreement. Thus, from the aforesaid facts available on record, prima-facie, it appears that the housing loan taken by the assessee was not utilised for purchase of the new house. 7. Even, assuming that the housing loan was utilised for the purpose of purchase of new house property, it needs to be examined whether by the reason of utilisation of ho....