TaxTMI 
TaxTMI 
2020 (8) TMI 360
X X X X Extracts X X X X
X X X X Extracts X X X X
....w and on facts of the case, for want of jurisdiction and various other reasons and hence the same may kindly be quashed. 2.1 Rs. 35,68,959/-: The ld. CIT(A) has grossly erred in law as well as on the facts of the case in confirming the addition of Rs. 35,68,959/- on account of long term capital gain by denying the claim/deduction/exemption u/s 54F. Hence, the addition so made or claim so denied disallowance by the ld. AO and confirmed by the ld. CIT(A) is being totally contrary to the provisions of law and facts on the record and hence the penalty may kindly be deleted in full. 2.2 The ld. AO as well as the ld. CIT(A) have grossly erred in law as well as on the facts of the case in not considering the facts, evidences and vital judgment....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the ld. CIT(A) has confirmed the disallowance made by the AO. 3. Before us, the ld. AR of the assessee has submitted that the AO has disallowed the claim of deduction U/s 54F of the Act on as many as 4 grounds whereas the ld. CIT(A) has confirmed the disallowance only on one ground being more than one residential houses were owned by the assessee as on the date of sale. He has vehemently contended that the assessee has shown in the balance sheet as on 31.03.2013 a flat in Ahemdabad city however, the said flat bearing No. C-501 was not allotted to the assessee till the date due to some dispute in the project itself. Thus, the ld. AR has submitted that the ld. CIT(A) has disallowed the claim without considering all facts and evidences prod....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the assessee U/s 54F of the Act in para 3.2 as under:- "3.2 The reply filed by the assessee has not considered and placed on record. On perusal of the details filed with the reply it is noticed that the claim of the assessee as per deduction U/s 54F is not acceptable on the following points/grounds:- 1. On perusal of balance sheet for the year ending on 31/03/2013, it is noticed that the assessee has one flat at Ahmedabad, it means that the assessee has already two residential house prior to 31/03/2013 therefore the condition laid down in the section 54F that the assessee can have or can invest only in two residential house property for taking deduction u/s 54F of the Act, 2. As per the section 54F the assessee has to start constructi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssions submitted by the Ld. A/R and the order of AO. I have also gone through various judgments cited by the Ld. A/R and those contained in the order of AO. 7.3 The basic controversy is denial of deduction u/s 54F of the Act. The AO denied such deduction due to multiple reason predominant being the appellant had 2 house properties in the material time. The AO referred to the Balance Sheet as at 31.3.2013 and noted that there is another flat in Ahmedabad. The appellant however denied saying it was only part investment wherein no flat was registered and is also not shown in the subsequent balance sheets. 7.4 I have carefully perused the APB. The balance sheet and Profit & Loss account are on APB page- 8-10. In the balance sheet entry "f....