2020 (11) TMI 933

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.... the denying deduction u/sec. 54F(3) of the Income Tax Act, 1961 (hereinafter referred to as 'Act'). 3. Facts of the case in brief are that assessee is an individual and drawing salary income from LIC of India, she filed her return of income for the A.Y. 2011-12 declaring total income of Rs. 5,03,550/- which was processed u/sec. 143(1) dated 14/03/2012. Subsequently, the AO issued notice u/sec. 148 observing that the assessee has sold the immovable property comprising of three pieces of land for a total consideration of Rs. 1,16,95,080/-and deposited the same in Capital Gains Deposit Scheme with Corporation Bank on 03/02/2009. Later she purchased the land admeasuring 313 sq.yds. with AC sheets shed and claimed exemption u/sec. 54....

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....essee is in appeal before this Tribunal. 6. During the appeal hearing, ld.AR submitted that assessee has sold three pieces of land for a consideration of Rs. 1,16,95,080/- and deposited the same in capital gains deposit scheme with Corporation Bank on 03/02/2009. Subsequently, she purchased a site admeasuring 313 sq.yds. along with AC sheet shed on 07/02/2009 for a consideration of Rs. 65,88,000/- which was claimed as exemption u/sec. 54F of the Act. The land along with AC shed purchased by the assessee cannot be held as dwelling unit since the AC shed was only 50 sq.ft. which does not have any amenities for living, therefore the assessee intended to construct a decent residential unit hence she has given the same land for development an....

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....ence violated the provisions of section 54F which stipulates that residential house purchased by the assessee on which deduction u/sec. 54F is claimed should not be transferred within a period of three years from the date of purchase or construction. Since the assessee has transferred the property within three years, the Ld.DR argued that CIT(A) rightly upheld the order of the AO and no interference is called for. 8. We have heard rival contentions and perused the material placed on record. 9. In this case, the assessee had disposed of 03 pieces of land for a consideration of Rs. 1,16,95,080/- and deposited the same in the capital gains deposit scheme with Corporation Bank on 03/02/2009. Subsequently, she had purchased the land with A....

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....ssessee also entered into MoU which is enclosed in page no.29 to 32 agreeing to pay Rs. 40.00 lakhs as a consideration over and above value of relinquishing the right of 106.34 sq. yds.of land as per development agreement dated 29/07/2010. From combined reading of the development agreement, MoU and facts placed before us it is understood that the assessee has sold the 03 pieces of land and constructed a residential unit within the time specified in section 54F of the Act. As per the statement of facts placed before the ld. CIT(A) the entire transaction was completed within the time allowed u/sec. 54F of the Act which clearly reveals that there were no separate transactions. By any stretch of imagination AC shed of 50 sq.ft. cannot be stated....