TaxTMI 
TaxTMI 
2020 (1) TMI 214
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....7. 2. The Assessee raised the following grounds of appeal: ''1. The order of the Commissioner of Income Tax (Appeals) is contrary to Law, facts and in the circumstances of the case. 2. The Commissioner of Income tax (Appeals) erred in confirming the disallowance of the deduction under Section 54 in respect of the amount of Rs. 70.32 Lakhs being contributed by the Appellant's husband towards reinvestment in new house property. 2.1 The Commissioner of Income tax (Appeals) erred in holding that the legislative intention is to provide deduction under Section 54 only in respect of reinvestment in a new house property out of the long term capital gains, and this cannot include the amount contributed by the spouse, th....
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....th has to be interpreted liberally, restrictions on it too has to be construed so as to advance the objective of the provisions and not to frustrate it'. 3. The Appellant craves leave to adduce additional grounds at the time of hearing''. 3. The brief facts of the case are as under: The appellant is an individual. The return of income for the AY 2016-17 was filed on 30.07.2016 disclosing total income of Rs. 15,08,810/-. Against the said return of income, the assessment was completed by the Assistant Commissioner of Income Tax, Non Corp. Circle 18(1) Chennai vide order dated 22.12.2018 passed u/s. 143(3) of the Income Tax Act, 1961 (for short 'the Act') at total income of Rs. 1,07,41,750/- by restricting capital gains u/s.54 o....
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....t appeal relates to the allowance of deduction u/s.54 of the Act. Assessee had sold house property located at Marigold Co-operative Housing Society Ltd, Flat No.803, Sapodila, Vadagaon Sheri, Pune for a consideration of Rs. 2,90,00,000/-. The capital gains were computed at Rs. 1.71 Crores after reducing cost of indexation of Rs. 1.19 Crores. Assessee bought new residential property for Rs. 1,88,00,000/- at No.A-1405, Radiance Mandarin, No.1, Pallavaram Thoraipakkam Radial Road, Chennai-97 and claimed exemption of capital gains u/s.54 of the Act as assessee brought new residential property for consideration of Rs. 1.88 Crores. During the course of assessment proceedings, the Assessing Officer found that sale consideration received was inv....
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....he sale of original asset. There is no provisions under Section 54 of the Act stipulating that assessee should utilize the amount which he obtained by way of sale for meeting the cost of new house. It is settled principle of interpretation of statute that Court do not have power to go beyond the terms of statute where the benefits are granted subject to fulfillment of certain conditions. The Courts cannot impose some other conditions in order to give benefit conferred by the statute. 9. We also place reliance on the decision of Hon'ble Kerala High Court in the case of K.C. Gopalan (supra) wherein it was held as follows:- ''The assessee has to construct or purchase a house prperty for his own residence in order to get the benefit....
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....tation from what has been given to it by the CIT(A) and the Tribunal''. The Hon'ble Punjab and Haryana High Court in the case of Kapil Kumar Agarwal & Ors (supra) referring to the judgment of Hon'ble Kerala High Court in the case of K.C. Gopolan(supra) held as follows:- ''14. The assessee has to purchase or construct a house property during the period specified under section 54F of the Act in order to get benefit there under. Section 54F of the Act nowhere envisages that the sale consideration obtained by the assessee from the original capital asset is mandatorily required to be utilised for the purchase or construction of a house property. No provision has been made by the statute that in order to avail of the benefit of sectio....