TaxTMI 
TaxTMI 
2021 (7) TMI 774
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....g the exemption u/s 54F of I. T. Act. 2. The Ld. CIT (A) erred on facts and in law in upholding the disallowance of exemption u/s 54F of I. T. Act by stating that Investment in new assets has to be made' from the "net consideration" received on sale of the Original Assets and not from any other fund. 3. The Ld. .C.I.T. (A) erred on facts and in law in not considering that the Capital Gain arising on sale of Plot was invested in Plot No. 42B , Singar Nagar, Lucknow in accordance with the scheme laid out in Section 54F(1) of I. T. Act and all requirements of Section 54F are duly fulfilled. 4. The Ld. C.I.T. (A) erred on facts and in law in upholding the addition of Rs. 7,50,000/- u/s 2(22)(e) of I. T. Act without appreciating that n....
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.... Officer at Rs. 25,00,000/-. The assessee, before the Assessing Officer, claimed the said amount to be allowed as exemption u/s 54F of the Act from the Long Term Capital Gain of Rs. 17,24,084/-. However, the Assessing Officer rejected the claim of the assessee on account of the following two reasons: (a) that since the assessee has three properties, namely - (i) J-164, Aashiyana, Lucknow (ii) Plot No. 56-B, Singar Nagar, Lucknow and (iii) Plot No.,57-B, Singar, Nagar, Lucknow, accordingly, the assessee is not eligible for exemption u/s 54F of I .T. Act; and (b) that since the sale consideration from sale of Plot No. J- 196, Aashiyana, Lucknow, has not been utilized for construction of residential house at 56-B, Singar Nagar, Lucknow, th....
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....taken the cost of construction / investment at Rs. 25,00,000/- for the purpose of construction of the aforesaid house. 6. The ld. CIT(A) accepted that the assessee does not own three properties. However, she denied exemption under section 54F of I. T. Act by stating, at Para 15 of her order, as under: "In view of the above, it is clear that the Investment in the New Asset has to be made from the net consideration received on sale of the original assets and not from any other source. Therefore, appellant's contention that as per Section 54F of the Act, whatever total amount actually incurred by the assessee for construction of residential portion at Plot No. 56-B should be deducted irrespective of the fact that funds invested from dif....
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....ellant's contention that as per section 54F of the Act, the total amount actually incurred by the assessee for construction of residential portion at plot No. 56-B should be deducted, irrespective of the fact that the funds invested are from different sources and not from the capital gain, is devoid of any merit. 10. The issue is as to whether the ld. CIT(A) is correct in holding that as per the provisions of section 54F, the investment in the new asset has necessarily to be made from the net consideration received on the sale of the original asset and not from any other source. 11. In 'CIT vs. Kapil Kumar Agarwal' (supra), it has been held by the Hon'ble Punjab and Haryana High Court that section 54F nowhere envisages that the sa....
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....the hands of the assessee's wife, Dr. Nandita Sudhir. 17. Before the ld. CIT(A), it was explained by the assessee that the assessee had given a loan of Rs. 14,42,391/- to M/s Sun Eye Hospital and Laser Centre Private Limited, which is outstanding from assessment year 2015-16 and stands duly reflected in the audited Balance Sheet and the income tax return of the said Company; and that accordingly, to the extent of Rs. 14,42,391/-, no addition can be made u/s 2(22)(e) of I.T. Act in the hands of the assessee. In support of the same, a copy of the Ledger Account of the assessee in the books of M/s Sun Eye Hospital and Laser Centre Private Limited was also filed before the ld. CIT(A). Copies of the audited Balance Sheet and Profit and Loss....
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....rivate Limited (APB:41 & 42), the loan of Rs. 14,42,391.09 has been shown as outstanding opening balance as on 1.4.2015 and as closing balance as on 31.3.2016. Further, in the balance sheet of M/s Sun Eye Hospital & Laser Center Private Limited, for the year ending 31.3.16 (APB:43 to 54), the loan account of Dr. Sudhir Srivatsava is lying under "Schedule 2.03- Long term Borrowings". The said Schedule 2.03 is placed at page 48 of the paper book. In the said Schedule, the loan of Dr. Sudhir Srivastava is grouped under the sub-head "Unsecured Borrowings" at Rs. 68,45,871.64. The breakup of this sub head "Unsecured Borrowings" is placed at page 41 of the paper book, as under: (1) Loan A/c Asha Verma Rs. 48,72,017.11 (2) Loan A/c Nandita....