TaxTMI 
TaxTMI 
2017 (9) TMI 1949
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....ded towards alteration and additional construction of the residential house purchased as the exemption under section 54F can be claimed only for either 'purchase' or 'construction' of a residential house and not for 'purchase & further construction/alteration' of a residential house. 3. The Ld.CIT(A) erred in placing reliance on the decision in the case of Mr. Saleem Fazelbhoy v. DCIT in ITA No.2012(MUM) of 2003 dtd. 29.06.2006 as the same is distinguishable because in that case the residential house purchased was not in a habitable condition, hence the assessee had to spend amount in order to make it habitable while in the present case of the assessee, the earlier owner of the property had constructed the residential property in t....
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....n the LTCG expended over and above the purchase value for renovation/alteraticn and expansion after the 'purchase'. 6. The Ld. CIT(A) erred in allowing the claim of the assessee u/s 54F to the extent of Rs. 55,89,182/- expended after the purchase of the new asset for the purpose of renovation and expansion because as per sub-section (4) to section 54F, the amount of the net consideration which is not appropriated by the assessee towards the purchase of the new asset before the date of furnishing the return of income u/s 139, shall be deposited by him in an account of any scheme framed in this behalf and the amount already utilized by the assessee for the purchase or construction of the new asset together with the amount so deposite....
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....02.2010 and subsequently paid a sum of Rs. 2 lakhs as commission on sale proceeds. Thereafter the assessee purchased new property consisting of both land and building located at No.733, I Block, 6" cross, Valagerhalli Extension, Jnanabharathi Layout, Bengaluru 560 059 on 01.07.2010, for a sale consideration of Rs. 75,75,475/-. The break-up of the said amount is as under : Registration .. Rs. 40,00,000 Stamp duty - Rs. 3,09,100 Paid to contractor Addition/alteration .. Rs. 32,50,000 Cost of construction of 3" floor - Rs. 23,00,000 Thus the assessee has utilised the entire amount for construction of new house within the provisions of Section 54F of the Act. The AO was not convinced with the submissi....
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.... State of Bihar v. S K. Raoy [AIR 1966 SC, dt.24.04.1966]| 06. We have heard the rival submissions and perused the material on record. Section 54F reads as under : 54F. Capital gain on transfer of certain. capital assets not to be charged in case of investment in residential house.-(1) Where, in the case of an assessee being an individual, the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house (hereafter ....
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.... (2) Where the assessee purchases, within the period of one year 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 changed under section 45 on the basis of the cost of such new asset as provided in clause (a), or, as the case may be, clause (5), of sub-section (/), shall be deemed to be income chargeable under the head "Capital gains" relating to long-term capital assets of the previous year in which such residential house is purchased or constructed. ....