2021 (4) TMI 809

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....as it is against the Appellant is opposed to law, weight of evidence, natural justice, probabilities, facts and circumstances of the Appellant's case. 2. The appellant denies himself liable to be assessed to a total income of Rs. 32,68,390/- as against the returned income of Rs. 2,57,770/- on the facts and circumstances of the case. 3. The learned CIT(A) failed to appreciate that the appellant has utilized the capital gains for acquiring a house property, by making payments to the seller of the house property and has made a proper claim of deduction under section 54F of the Act, on the facts and circumstances of the case. 4. The learned CIT(A) was not justified in law and on facts in appreciating that the appellant has acquired possession of the house property and was enjoying the rents from the new asset, thereby acquired the house property within the time prescribed under section 54F of the Act and thereby made a valid claim, on the facts and circumstances of the case. 5. The authorities below failed to appreciate that the payments made to the vendor was a commercial transaction for sale of property with a consideration and not one out of love and affection, on th....

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.... Rs. 42,62,500. The assessee had claimed deduction u/s 54 / 54F of the I.T.Act for investment made in a new property. With regard to investment in a new property, the assessee furnished sale agreement on e-stamp paper dated 22.04.2014 executed between the assessee and his son Dr.Jagadeesha for purchase of a house situated at Attur Village, Yalahanka for a consideration of Rs. 30,00,000. The sale consideration is claimed to have been made as under:- (i) Rs. 10,00,000 by cheque No.904151 dated 24.04.2014 (ii) Rs. 10,00,000 by cheque No.904152 dated 25.04.2014 (iii) Rs. 3,50,000 by cheque No.904153 dated 25.04.2014 (iv) Rs. 6,50,000 by cash. 6. During the course of assessment proceedings, the assessee was asked to produce the registration details of the new asset. The authorized representative vide letter dated 03.11.2016 submitted that the assessee is unable to execute the sale deed in his favour because of his illness. Further, the AR contended that the sale agreement in which the payments have been indicated is a sufficient proof for the purchase of the property. However, the arguments of the AR was not accepted by the A.O. and he denied the benefit of section 54F of t....

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.... registered instrument and an agreement of sale does not create any interest or charge on its subject matter. 4.4.12 IN view of the above discussion, I am of the opinion that the assessee has not purchased a residential property within the period specified under section 54F of the Act to make him eligible for deduction under the section 54F of the Act. Therefore, no deduction under section 54F of the Act is allowed to the assessee. 4.5 In view of the above discussion, the income from capital gains is computed as under: Sale consideration - assessee's share Rs. 42,62,500 Less : Indexed cost of acquisition as per assessee's computation Rs. 10,04,730 Long term capital gains Rs. 32,57,770 Less : Deduction u/s 54F - Nil as discussed in para 4.4 Rs. NIL Long term capital gains Rs. 32,57,770 7. Aggrieved by the denial of benefit u/s 54F of the I.T.Act, the assessee preferred appeal to the first appellate authority. The CIT(A) confirmed the view of the Assessing Officer in denying the claim of deduction u/s 54F of the I.T.Act. 8. Aggrieved by the order of the CIT(A), the assessee has filed this appeal before the Tribunal. As mentioned earlier, the assessee has ....

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.... learned assessing officer nor the learned Commissioner of Income-tax (Appeals)- 12, Bangalore. The appellant is making a fresh claim of investment in house property, in so far as the investment was made in the name of his son as utilization of capital gains from sale of land." 9. In support of the admission of additional ground, the assessee has also filed fresh / additional evidence in the form of copy of ITRV of Dr.Jagadeesha for the relevant assessment year 2014-2015, copy of the paper book dated 26.12.2020, etc. 10. The learned Departmental Representative supported the orders of the Assessing Officer and the CIT(A). 11. I have heard rival submission and perused the material on record. The assessee has filed additional ground by raising a fresh claim. In the additional ground, it is contended that the proceeds of the original asset was invested in house property in the hands of the son and investment of sale consideration towards the new residential house property should be alternatively be considered in the hands of the son of the assessee. The assessee had relied on judicial pronouncements that deduction u/s 54F of the I.T.Act should be considered in the name of the so....