TaxTMI 
TaxTMI 
2022 (1) TMI 837
X X X X Extracts X X X X
X X X X Extracts X X X X
....perusal of the documents so filed by the assessee, the AO observed that the assessee had purchased industrial plot No. 10C, Phase-I, Mohali on 25.10.1969 for a consideration of Rs. 35,000/- through a Conveyance Deed executed on 13.06.1973. It was further observed by the AO that this industrial plot was sold by the assessee for a consideration of Rs. 9.25 crores as per registration deed executed on 10.05.2015. The AO accordingly, observed that a perusal of the documents showed that the nature of the property sold is an industrial plot as is apparent from the contents of the sale deed. Further, the AO also referred to the copy of the Valuation Report prepared by M/s. Syal & Associates, Chartered Accountants as so submitted by the assessee and as per the AO, a perusal of the said report also shows that the valuer has certified the nature of the property as industrial property. The AO accordingly, informed the assessee that he was not eligible to claim deduction u/s. 54 of the Act as he has sold an industrial plot and not a residential house. The assessee was also informed that he is eligible for deduction u/s. 54F of the Act. Accordingly,, the AO disallowed the deduction u/s. 54 of th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s. The total covered area of the construction on this plot is 52105 square feet. The Conveyance Deed of the above property was executed on 13.06.1973 in the officer of Estate Officer, Urban Estate, Punjab, Chandigarh, and was registered in the name officer of Sub Registrar Kharar at Serial No. 1545, Book No. 1, Dated 07.07.1973. The ownership of the above property was transferred in my name by the Estate Officer, Puda, Mohali vide letter No. 4376 dated 23.03.1999. The above industrial plot and the construction erected thereon, are free from all sorts of encumbrances and no litigation is going on regarding the same. Now I in my full sense of mind have sold above said Industrial Plot alongwith the construction erected thereon, including all its rights to water, electricity, air, light, including all type of connection, including all deposited securities, including all those rights which at present are available to us, for a total sale consideration of Rs. 9,25,00,000/- half of which comes to Rs. 4,62,50,000/-." 6.3.3 From the above submissions of the assessee made during the assessment proceedings, it is amply clear that the assessee himself acknowledges and accepts the fact that t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....idence of change in land use of the plot either. Neither has any evidence been adduced to witness that the claimed residence had been disclosed to the department as being been assessable under the head 'Income from House Property'. 6.3.4 Further, the case laws cited by the assessee during appellate proceedings are clearly distinguishable. The case of Meenu Bansal in ITA No. 627/Chd/2017 dated 8/10/2018 is on the issue of 263 order passed by the PCIT, holding the AO's order to be erroneous. Further the issue under contention was one of a Shop-cum-Flat and not that of an industrial plot. The other cited case was that of Shri Shrey Sharma Guleri in IT Appeal No. 6147 of 2016. ITAT Mumbai had held that basement of a residential house was also part & parcel of the residential unit befitting exemption under section 54/54F of the Act. The facts of the third case viz. Smt. Harpreet Kaur in ITA No. 293/Chd/2014 reveal that the ITAT, Chandigarh vide its order dated 03/06/2015 had again gone into the validity of proceedings u/s. 263 undertaken by the CIT. 6.3.5 In light of all the above there are no grounds to intervene with the order of the AO to deny claims u/s. 54 of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ith construction thereon situated at Sector 57-A, Focal Point, SAS Nagar, Mohali having an area of 4166.70 sq.yard. In the said Sale Deed, there is a clear mention that the assessee is the absolute owner and in possession of the said industrial plot and the assessee in his full sense of mind has sold the said industrial plot alongwith construction erected thereon. Therefore, as borne out from the contents of the Sale Deed duly executed by the assessee and registered with the office of Sub Registrar, SAS Nagar, Mohali, it is clear that what has been transferred is an industrial plot (alongwith the construction thereon) and not a residential plot. Further, there is a Valuation Report which has been placed on record by the assessee during the course of assessment proceedings. The said Valuation Report has been prepared by M/s. Syal & Associates, Chartered Engineers as on 12.01.2015 about a month prior to the execution of the Conveyance Deed on 10.02.2015 which shows the locality of the property, usage and specification of the constructed area just prior to the execution of the Conveyance Deed. On perusal of the Valuation Report, it is noted that the subject property was located in an ....