TaxTMI 
TaxTMI 
2020 (4) TMI 360
X X X X Extracts X X X X
X X X X Extracts X X X X
....y at Trichy on 08.10.2014 for a sale consideration of Rs. 2.27 crores while its value u/s. 50C was at Rs. 2,28,33,225/-. Out of the sale consideration, he invested in two vacant lands for a total consideration of Rs. 2,55,61,000/- and claimed deduction u/s. 54. The A O noticed that as per the provisions of the Act, in the vacant land of the original asset, the assessee was supposed to construct a residential house within 3 years from the date of transfer. However, from the details obtained during the course of assessment proceedings etc , he found that the impugned land was lying as vacant land as on 13.10.2017, the vacant land is not assessed to the property tax and it does not have an Electricity connection and hence, he disallowed the a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....unauthorized layouts or flats or Buildings (WP No. 19566/2015) 22.09.2016 Notice Issued u/s 143(2) 22.05.2017 Notice Issued u/s 142(1) 13.10.2017 Notification of Tamilnadu Government Notification of TN government for regularization of plots and buildings. 29.11.2017 Letter issued by AO Show cause as to why Rs. 2,28,33,225/- being full value of consideration u/s 50C instead of Rs. 2,27,00,000/- cannot be taxed as long term capital and sought for details of investment, if any in capital gain account scheme. 22.12.2017 Final Submission before AO along with Revised statement of Income. 28.12.2017 Assessment Order passed by AO Disallowed claim u/s 54 24.01.2018 Appeal filed before CIT (A) 25.02.2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bmitted before AO. Due to the above order of the High Court, the appellant was barred by Law from starting the house construction after 09.09.2016. Hence the appellant did not start the construction and waiting for the final outcome of the Judgment which was subsequently posted for hearing. 11. The Hon'ble Madras High Court has subsequently taken up the case for hearing on various dates and finally confirmed the original restriction imposed on 09.09.2016 and advised the Tamil Nadu Government to come out with the regularization scheme for giving approvals of the plots and building which was constructed on unapproved layouts. Accordingly the Government of Tamil Nadu has come out with a Regularization of Unapproved plots and Layouts Rule....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on'ble Madras High Court. Hence appellant request A O to kindly treat the above situation beyond his control and allow his claim u/s 54 on the basis that appellant had utilized the entire Long Term Capital Gain before filing the Return of Income for AY 2015-16 and completed the construction with about 2 months delay compared to the deadline of 08.10.2017." and submitted that the lower authorities have not considered the facts and circumstances which were beyond the control of the assessee and refused to the allow the assessee's claim u/s 54 . Since the assessee had utilized the entire Long Term Capital Gains before filing the return of income for AY 2015-16 and completed the construction with about 2 months delay compared to the deadli....