TaxTMI 
TaxTMI 
2019 (11) TMI 929
X X X X Extracts X X X X
X X X X Extracts X X X X
.... "1.On the facts & circumstances of the case, the order passed by the Learned CIT (A)is bad, both in the eye of law and on the facts. 2. a) That having regard to facts and circumstances of the case, the Ld. CIT (A) has erred in law and facts in confirming the disallowance of deduction claimed u/s 54F of Rs. 24,12,480/-& deduction u/s 54 of Rs. 28,77,944/- without taking into consideration of the facts that the assessee had invested the long term capital gain on purchase of residential plot and remain invested for more than three years. b) That the Ld. CIT (A) had not considered the fact that the assessee has been allotted a residential plot by the builder, but due to possession of the plot was given by the builder afte....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) has confirmed the order of the Assessing Officer on same reasoning. 4. Before us, it was submitted by the AR of the assessee that the assessee has made an investment of Rs. 54,36,000/- in acquiring a residential property at Chandigarh from Omaxe Chandigarh Extension Developers Pvt. Ltd. by 23.06.2011 as against exemption of Rs. 52,90,424/- claimed by her. The assessee has filed copy of the allotment letter. The assessee also submitted the copy of agreement dated 05.06.2011 entered into by the assessee with the developer. As regard the construction he submitted that the same could not be done as the developer could not transfer the possession to the assessee despite there being a clear condition in the agreement that the possession will....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion claimed by the assessee under section 54 and 54F of the Act. It is an undisputed fact that, firstly, the assessee has earned capital gain and has invested the same in purchase of a residential plot; secondly, the assessee has made a total investment of Rs. 63,03,005/- which is more than the exemption of Rs. 52,90,424/- claimed by her; and lastly, the assessee made this investment within the prescribed period. This payment was made to the developer Omaxe Chandigarh Extension Developers Pvt. Ltd. Consequent to that, the developer issued allotment letter and also entered into an agreement dated 05.07.2011. As per the agreement the developer was supposed to hand over the possession of plot within 18 months from the date of allotment ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ot be disputed. This vital fact assumes great significance as assessee had taken all the steps to make the investment for the purchase of house, and also assessee had deposited Rs. 25,10,000/- in the capital gain account with PNB so as to construct the house. This unequivocally demonstrate that assessee really intended to construct the new residential house thereon. It was based on this bonafide intention assessee had claimed exemption under section 54 of the Act. Without the purchase of land, house could not have been constructed. The first step was to purchase the land, which was done. Thereafter the developer was to handover the plot, so that assessee could have constructed the house within time allowed of 2 years. However, no s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he intention of the Legislature is to give him relief in the matter of payment of tax on the longterm capital gain. If a person, who gets some excess amount upon transfer of his old residential premises and thereafter purchases or constructs a new premises within the time stipulated under section 54 of the Act, the Legislature does not want him to be burdened with tax on the long-term capital gain and, therefore, relief has been given to him in respect of paying income-tax on the long-term capital gain. The intention of the Legislature or the purpose with which the said provision has been incorporated in the Act, is also very clear that the assessee should be given some relief. Though it has been very often said that common sense is a stran....