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2019 (1) TMI 890
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....d u/s.250 on 19-10-2016 for A.Y.2013-14 by CIT(A)-7, Abad upholding the rejection of exemption u/s 54F of RS. 41 lacs and disallowances expenses aggregating to Rs. 1,88,706/-made by AO is wholly illegal, unlawful and against the principles of natural justice. 1.2 The Ld. CIT(A) has grievously erred in law and or on facts in not considering fully and properly the submissions made and evidence produced by the appellant with regard to the impugned additions. 2.1 The Ld. CIT(A) has grievously erred in law and on facts in confirming the disallowance of exemption claimed u/s.54F of Rs. 45 lakhs (later on reduced to Rs. 30 lakhs). The Ld. CIT(A) has failed to appreciate that the conveyance deed for purchase of new residential hou....
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....se. From the detail filed by the assessee, it was noticed that assessee has purchased one residential house and made payment of Rs. 30 lacs within the stipulated time period of two years, however, the payment of remaining amount and the documentation of the purchase of property was completed after expiry of stipulated time. The assessee explained because of death of the seller of the property Shri Tanumal J Kachbani the sale deed was registered after clearance of the title. The assessing officer has not accepted the explanation of the assessee stating that deed was registered on 16th Sep, 2015 much later on the date of furnishing of return of income for assessment year 2013-14. Consequently, the assessing officer has stated that assessee ha....
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....as on pages 11 & 12 of the assessment order distinguished each case relied on by the appellant from the facts of the case in hand. 7.2.1 In view of the above discussion, the action of the AO denying exemption u/s. 54F to the appellant is confirmed. Ground of appeal No. 4 is dismissed." 5. During the course of appellate proceedings before us, the ld. counsel has furnished paper book giving details of submission made before the assessing officer and ld. CIT(A). During the course of appellate proceedings, he has also placed reliance on the decision of Sanjeev Lal vs. CIT (2014) 365 ITR 389. He has contended that ld. CIT(A) is not correct in disallowing the claim of deduction u/s. 54F without considering the bona fide reason for del....
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....we observed that on expiry of the seller the title of the property was cleared after some time in favour of Shri Mohan Mohanlal T. Kachbani which resulted in execution of sale deed on 16/09/2015. We have perused the decision in the case of Sanjeevlal case of the Hon'ble Supreme Court wherein the assessee has entered into an agreement to sell the house on 27th Dec, 2002 and the sale deed could not be executed for the reason that the assessee had been prevented from dealing with the residential house by the order of the court due to pending litigation. The relevant part of the judgment of hon'ble supreme court of India in the case of Sanjiv Lal vs. CIT 365 ITR 389 para 23 to 26 is reproduced as under:- "23. Consequences of execution ....
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.... term capital gain which they had earned in pursuance of transfer of their residential property being House No. 267, Sector 9-C, situated in Chandigarh and used for purchase of a new asset/residential house. 26. The appeals are, therefore, allowed with no order as to costs. The impugned judgments are quashed and set aside and the Authorities are directed to re-assess the income of the appellants for the Assessment Year 2005-2006, after taking into account the fact that the appellants were entitled to the relief, subject to fulfilment of other conditions." It is crystal clear that the decision in the case of Sanjeevlal was delivered after taking into account the peculiar facts of the case that the sale deed could not be executed ....