TaxTMI 
TaxTMI 
TaxTMI 
2021 (5) TMI 638
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.... The assessment was completed u/s.143(3) on 29-12-2016 at the same income. The ld. PCIT noticed that the assessee sold a piece of land on 11-12-2013 (Daregaon Land) for a consideration of Rs. 1.30 crore, which had been purchased in the year 2004 for a sum of Rs. 4,73,880/-. After indexation, the assessee had computed the long term capital gain of Rs. 1,20,72,972/- and thereafter claimed exemption u/s.54F towards investment of Rs. 1,42,05,400/- on construction of a new residential house. The ld. PCIT noticed that the assessee obtained the permission from Municipal Council, Jalna on 20-08-2014 for commencement of construction on a plot which was purchased on 17-12-2013. It was thus opined that the AO wrongly allowed exemption u/s.54F because....
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....ccepting the assessee's copy of Invitation card of house warming on 02-11-2016, the ld. PCIT went with the 'completion certificate' which was beyond a period of three years from the date of transfer. He also did not accept the assessee's contention that the construction was carried out on two plots as against permission sought and accorded only in respect of Plot No.28. This is how, he held that the AO failed to apply his mind while framing the assessment which led to the passing of an erroneous order which was prejudicial to the interest of revenue. Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 5. We have heard the rival submissions through Virtual Court and gone through the relevant material on record. The a....
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....as Annexure-3." There crept some dispute about the contents of Annexure-3 before the Tribunal. We go with the copy of Annexure-3, taken from the assessment folder, as produced by the ld. DR. The Annexure-3 is a copy of the ledger account of "Fine Living Residential House A/c. as on 30-09-2014", which shows total investment amounting to Rs. 1,42,05,404/-. Thus, it is discernible that the assessee properly declared the transaction of disposal of Daregaon Land and investment made in the new residential house for which exemption was claimed u/s.54F in the return of income; the AO required the assessee to produce necessary details in support of claim u/s.54F during the course of assessment proceeding; the assessee furnished the details which are....
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....cause the construction was not completed within the period of three years. As and when the target of investment of the eligible amount is achieved within a period of three years, the assessee earns exemption u/s.54F notwithstanding that he may continue to invest more on such new house beyond the given period. Since the law simply provides for investing the net consideration of the earlier transferred property as a sine qua non for claiming the exemption and not the completion of construction of the new residential house, such a condition cannot be read in the provision, as has been canvassed by the ld. PCIT. 7. The other objection taken by the ld. PCIT is that the assessee claimed to have invested a sum of Rs. 1.42 crore which was not refl....
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....ified by the AO but the necessary evidence to corroborate the assessee's claim was also placed before him, which is evident from the "Fine Living Residential House" deciphering investment of Rs. 1.42 crore in the new house. The ld. DR submitted that the commencement of construction certificate was issued on 20-08-2014 whereas the assessee claimed to have invested a sum of Rs. 1.42 crore as on 30-09-2014. We find from the details of Fine Living residential house that a sum of Rs. 55.04 lakh was invested in purchase of two plot Nos. 28 and 29. This leaves with a sum of Rs. 87.00 lakh which has been invested by the assessee towards purchase of cement, steel, sand, bricks, murum and soiling, labour payment and other construction expenses. Excep....