2020 (1) TMI 310

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....tained by the Ld.CIT(A) denying the deduction claimed u/s 54 of the Income Tax Act (in short 'Act'). 3. Brief facts of the case are that the assessee is an individual sold 195 sq.yds of Madras terraced room with plinth area of 100 sft bearing D.No.32- 37-20 in sy.No.129 part, Block No.4, Plot No.21 & 22, Market ward within Greater Visakhapatnam Municipal Corporation for a consideration of Rs. 9,00,000/- vide document No.4937/2006 dated 16.10.2006 and the market value of which was Rs. 13,29,500/- as per SRO, Visakhapatnam. The assessee filed the return of income in response to the notice issued by the AO admitting total income of Rs. 50,000/- from other source and Rs. 1,00,000/- as agricultural income on 21.04.2014. The assessee claimed ded....

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....y the Gram Panchayat, Kotada for construction of house, the AO disallowed the deduction claimed by the assessee u/s 54 and taxed the long term capital gains at Rs. 11,34,875/-. 4. Against the order of the AO, the assessee went on appeal before the CIT(A) and the Ld.CIT(A) dismissed the appeal of the assessee. The Ld.CIT(A) did not believe the contention of the assessee that the withdrawals made in the bank account were used for construction and relied on the decision of Hon'ble Supreme Court in the case of Dilip kumar and Company & Ors vide order dated 30.07.2018 in civil appeal No.3327 of 2007 and held that the assessee is not eligible for exemption, accordingly upheld the order of the AO. 5. Against which the assessee filed appeal befor....

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.... and there is no reason to disbelieve construction of house without having any evidence to disprove the same.. Hence, requested to set aside the orders of the lower authorities and allow the appeal of the assessee. 6. On the other hand, the Ld.DR strongly supported the order of the Ld.CIT(A) and submitted that the assessee failed to furnish the proof for construction of house, thus, requested to uphold the order of the Ld.CIT(A) and dismiss the appeal of the assessee. 7. We have heard both the parties and perused the material placed on record. In the instant case, the assessee has sold the property consisting of site and Madras terraced building located at Sy.No.129, Block No.4, Plot No.21 & 22 with D.No.32-37-20 within the Greater Visakh....