2022 (4) TMI 1020

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....na, Sr. DR ORDER PER Ms. MADHUMITA ROY - JM: The instant appeal filed by the assessee is directed against the order dated 28.12.2018 passed by the Commissioner of Income Tax (Appeals)-5, Ahmedabad arising out of the order dated 01.12.2017 passed by the ITO, Ward-5(3)(1), Ahmedabad under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") for A.Y. 2015-16. ....

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....he new property at Rs. 48,50,000/- only, a show-cause was issued to the assessee as to why the excess claim of exemption under Section 54 of the Act to the tune of Rs. 14,00,000/- should not be disallowed and added to the total income of the assessee. In reply to the said show-cause the assessee submitted that though as per the allotment deed the consideration of the flat is Rs. 48,50,000/- the....

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.... have incurred expenses to the tune of Rs. 14,00,000/- the same is not allowable under Section 54 of the Act and hence rejected by both the authorities below. 4. It is a fact that the assessee had incurred the cost for making the new property inhabitable before taking over possession of the same but considering the provision of the act we do not find any embargo in granting relief to the assess....

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....e of deduction under Section 54 and what is relevant is the date of completion of construction as well as a period of investment made by the assessee in such construction. Since the construction of the house was completed within the specified period under Section 54 of the Act the assessee was found to be eligible for deduction under Section 54 as observed by the Hon'ble Bench. We have further ....