TaxTMI 
TaxTMI 
2019 (12) TMI 762
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....der section 54/54F of the Income Tax Act, 1961 (for short "the Act"). 3. Brief facts are, the assessee, an individual, is a Chartered Accountant by profession. For the assessment year under dispute, the assessee filed his return of income on 30th September 2012, declaring total income of Rs. 25,92,570. The assessee was owner of two flats viz. Flats no.B-6 and B-15, in Shree Saraswati Co-operative Housing Society, Chembur. Flat no.B-15, was purchased by the assessee himself on 21st July 2013, for a sale consideration of Rs. 7.50 lakh, excluding stamp duty, registration charges and society transfer fee. Whereas, flat no.B-6, was inherited by the assessee on the death of his father in the year 1997. It is stated that assessee's father had p....
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....on on the reasoning that the deduction was neither claimed in the return of income filed by him nor by filing any revised return of income. Further, he held that Flat no.B-6, being a residential premise, the assessee cannot be allowed deduction under section 54F of the Act on transfer of such property. In this context, he observed, merely because the old as well as new flat was used by the assessee as office, it will not change its character as a residential house. Accordingly, he disallowed assessee's claim of decution under section 54F of the Act in respect of the flat received on surrender of old flat no.B-6. The assessee challenged the aforesaid decision of the Assessing Officer before the first appellate authority. However, learned Com....
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....learned Authorised Representative submitted, though before the Departmental Authorities, the assessee had claimed deduction under section 54F of the Act, however, deduction can be allowed to the assessee under the applicable provision. In this context, he submitted, the assessee has raised additional ground claiming deduction under section 54 of the Act. 5. The learned Departmental Representative submitted, the assessee had deliberately suppressed the fact that he was the owner of one more flat and has received a new flat on surrender of that flat. Therefore, assessee's claim of deduction under section 54/54F of the Act was not allowable. Further, he submitted, since the flat transferred by the assessee was a residential property, claim ....
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....rty, no deduction under section 54F of the Act can be allowed. Whereas, learned Commissioner (Appeals) has sustained the said disallowance on the reasoning that the assessee has suppressed the ownership of the second flat and the resultant capital gain and further, the flat sold being a residential property, deduction under section 54F of the Act cannot be allowed. Thus, from the aforesaid facts, it is clear that the assessee has transferred two flats and in lieu of those two flats has received two new flats on re-development. Merely because the assessee did not offer or disclose the capital gain from the second flat in the return of income would not disentitle him from availing the statutory deduction if otherwise he is entitled to it. The....