TaxTMI 
TaxTMI 
2021 (2) TMI 902
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....ts that the property sold by the appellant is HUF property, acquired by way of partition by appellant as karta of the HUF, though declared in ITR returns with individual PAN. 4. The CIT(A) was not correct in confirming the disallowance made by A.O. on selling expenses to the extent ofRs. 15,00,000/- claimed in the return of income and not appreciated the facts that the expenses spent by appellant exclusively on the property. 5. The CIT(A) and A.O. were not correct in not following the various High Court and Hon'ble ITAT decisions, where liberal interpretation is given for allowability of deduction u/s 54F being beneficial provision and also there is no specific bar in investment of property in the name of Family Members." 3. The facts of the case are that the assessee filed Return of Income declaring total income at Rs. 2,96,430 under the head `house property', `income from capital gain' and `income from other sources'. The assessee claimed deduction u/s 54F of the Act for the investment made in a residential property, in the name of his widowed daughter Smt. J. Shylaja. The assessee submitted before the A.O. that the property under question was received by inh....
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....ure her life. The assessee invested entire sale consideration in the land and residential house in widowed daughter's name and claimed exemption u/s. 54F of the Act on the Capital Gain arising out of said sale of property. The entire sale consideration having been invested by the assessee in the residential site and construction of residential house through banking channels and there is nexus between the sale consideration and investment made in the residential house property. He relied on the following judgments : (i) Smt.Pinky v. ITO [ITA No.2222/Bang/2019 ITAT Bangalore Benches - order dated 22.01.2020]. (ii) Subbalakshmi Kurada v. ACIT [ITA No.2493/Bang/2019- ITAT Bangalore Benches - order dated 08.05.2020] (iii) DIT v. Jennifer Bhide [(2012) 349 ITR 80 (Karnataka HC)] (iv) Bhatkal Ramarao Prakash v. ITO [(2019) 175 ITD 144 (ITAT Bangalore Benches)] (v) N.Ram Kumar v. ACIT [ITA No.1901/Hyd/2011 - ITAT Hyderabad] (vi) Late Gulam Ali Khan v. CIT [165 ITR 228 (AP)] High Court of Andhra Pradesh. (vii) CIT v. Ravinder Kumar Arora [ITA No.1106 to 2011 dated 27.09.2011] (viii) Shri Rajkumar Mandhani v. DCIT [ITA N....
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....e new asset, within a period of one year after the date of transfer of the original asset ; or(iii) constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset ; and(b) the income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the head "Income from house property". Explanation For the purposes of this section,-"net consideration", in relation to the transfer of a capital asset means the full value of the consideration received or accruing as a result of the transfer of the capital asset as reduced by any expenditure incurred wholly and exclusively in connection with such transfer. (2) Where the assessee purchases, within the period of two years after the date of the transfer of the original asset, or constructs, within the period of three years after such date, any residential house, the income from which is chargeable under the head "Income from house property", other than the new asset, the amount of capital gain arising from the transfer of the original asset not charged under section 45 on t....
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.... be, clause (b) of sub-section (1),exceeds(b) the amount that would not have been so charged had the amount actually utilised by the assessee for the purchase or construction of the new asset within the period specified in sub-section (1) been the cost of the new asset,shall be charged under section 45 as income of the previous year in which the period of three years from the date of the transfer of the original asset expires ; and(ii) the assessee shall be entitled to withdraw the unutilised amount in accordance with the scheme aforesaid. 7. The objection of the ld. DR is that the assessee has purchased new residential house in the name of Smt. Shailaja J, who is married widowed daughter of the assessee. According to the ld. DR, the Income Tax Act needs to be given legal interpretation not a liberal interpretation as contended by the ld.AR. If the word 'assessee' used in the Income Tax Act is to be given liberal interpretation, it would be tantamount to giving free hand to the assessee and its legal heirs, it shall curtail the revenue of the Government, which the law does not permits. 8. On the other hand, the contention of the learned Authorised Representative is that the a....