TaxTMI 
TaxTMI 
2018 (12) TMI 1458
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....total income of Rs. 23,59,460/- on 15. 10. 2013. The case was selected for scrutiny and the assessment was completed u/s 143(3) of the Income Tax Act, 1961 (hereinafter called as 'Act') on total income of Rs. 24,31,720/-. Subsequently, the Assessing Officer (AO) reopened the assessment u/s 147 and made the reassessment u/s 143(3) r. w. s. 147 by an order dated 22. 05. 2015 on total income of Rs. 24,31,720/- i. e. as per the original order dated 31. 01. 2013. 3. Subsequently, the Pr. CIT, Rajahmundry has taken up the case for revision u/s 263 and found that the assessee had transferred the land with iron sheets shed and has not submitted the information or evidence supporting whether he has constructed the residential house within a period ....
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....t the assessee had entered into an exchange deed vide document No. 4200/2009 with one Sri Dandamudi Suman Babu by virtue of which the assessee had transferred 958. 2 sq. yds of the property(land plus shed) in favour of the said person who in turn has transferred 1089 sq. yds of his land in favour of the assessee. The Ld. Pr. CIT further observed that the value of the said plot of land was Rs. 95,80,000/- and the constructed area of shed was 6656 sq. ft. , value of which works out to Rs. 39,93,600/-and the total cost of the said land and building transferred would be Rs. 1,35,73,600/- (9580000+3993600). As per document No. 3734/2002, the assessee had purchased the above property for a sum of Rs. 13,46,000/- and the indexed cost of acquisitio....
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....ssessment erroneous and prejudicial to the interest of the revenue. Accordingly, the Ld. Pr. CIT set aside the order of the AO and directed the AO to make the assessment as per the directions given in the revision order u/s 263 of the Act. 6. Against the order u/s 263, the assessee filed appeal before the Tribunal. 7. We have heard both the parties and perused the material placed on record. In this case, the assessment was originally completed u/s 143(3) and subsequently, the assessment was reopened and completed u/s 147 r. w. s. 143(3) by an order dated 22. 05. 2015. The case was taken up for revision u/s 263 for the two reasons i. e incorrect claim of deduction u/s 54F and non admission of rental income. 8. Incorrect claim of deduction....
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....esidential building. The assessee has placed exchange document dated 03. 08. 2009, as per which, both the parties have agreed to value both the properties at Rs. 88,08,000/-. The SRO value of the property transferred by the assessee was valued at Rs. 6,000/- per sq. yd as available in page No. 5 of the exchange deed dated 03. 08. 2009 and the agreed value of land and shed was Rs. 88,0800/-. Similarly, the assessee had received 1089 sq. yds of vacant site at an agreed cost of Rs. 88,08,000/- for which the market value was Rs. 10,000/- per sq. yd and the aggregated deemed consideration was Rs. 1,08,90,000/- from Sri Dandamudi Suman Babu. From the recitals of the above exchange document dated 03. 08. 2009, it is evident that the deemed conside....
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....ht to the firm by the assessee as capital contribution and thereafter, the assessee availed the bank loan and constructed the new house within the period of 3 years and claimed deduction u/s 54F of the Act. Therefore, the Hon'ble Kerala High Court decided the issue against the assessee and in favour of the revenue holding that the assessee is not entitled for deduction u/s 54F of the Act. In the instant case, the assessee has received the consideration in the form of land and the entire land was utilized for construction of new house, therefore, the case law relied upon by the Ld. Pr. CIT is distinguishable and not applicable to the facts of the present case. 10. This issue of capital gains was examined by the AO in the reassessment procee....
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....t, the entire net consideration is eligible for deduction u/s 54F of the Act. In the instant case, there is no dispute that the entire land received in exchange was used for the purpose of acquiring the new house and the assessee had completed the construction of the new house within the stipulated period u/s 54F of the Act. Therefore, we are of the considered opinion, that the assessee would be entitled for deduction u/s 54F as claimed. There is no error which causes prejudice to the interest of the revenue, accordingly, we set aside the order of the Ld. Pr. CIT and allow the appeal of the assessee. 11. Non-admission of rental income. The issue of admission of rental income was also examined by the AO vide questionnaire dated 27. 04. 2015....