TaxTMI 
TaxTMI 
2022 (8) TMI 1018
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....ramed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 15-12-2016. The grounds of appeal taken by the assessee read as under: 1.a) The learned CIT(Appeals) has erred by not fully considering the evidence towards the cost of construction of new house property. He has not considered the Confirmation by the builder for the amount received by him from appellant for construction. b) The learned CIT(Appeals) vide para 28 of his order u/s. 250(6) has held that "Regarding the cost of construction of new residential house property, the assessee claimed to have paid a sum of Rs.74,09,924/- to the contractor Sh.J.Baskaran prop. Of Mis. A.B.Constructions. It is pertinent to mention here that the entire amount was expended in ca....
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....ng the requirements/procedures as specified in Board Instruction no. 5/2016 dated 14.07.2016. The AO's action in disallowing House Rent Allowance Exemption when the limited scrutiny notice is for i) Cash Deposit and ii) Deduction claimed under the Head Capital Gains is ultra vires of section 133(3) in view of above Board Instruction. 3) The appellant craves leave to add, amend, modify, rescind or alter any ground of appeal. As evident, the assessee is primarily aggrieved by computation of capital gains and denial of full deduction u/s 54/54F. 2. The Ld. AR advanced arguments assailing the additions sustained in the impugned order which has been controverted by Ld. Sr. DR. Having heard rival submissions and after perusal of ca....
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....aining books of accounts since his income was claimed to be below taxable limit. Therefore, the construction cost was restricted to Rs.49.95 Lacs. In other words, the deduction was restricted to Rs.117.99 Lacs and taxable capital gains were worked out as Rs.43.79 Lacs. 5. The revised computation of capital gains as submitted by assessee before Ld. AO during remand proceedings was as under: - INCOME FROM CAPITAL GAINS PROPERTY 1 PROPERTY 2 PARTICULARS THIRUVALLUR KOLATHUR Sale Consideration 14,112,000 4,290,000 (coies of sale deeds have already been submitted during Appellate/Remand Proceedings and upheld) (Date:02.09.2013) (Date:05.09.2013) Net Consideration 14,112,000 4,290,000 Sale Consid....
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....0,85,506 Pre-Construction Housing Loan Interest Rs. 2,20,702 Total Rs. 1,17,16,132* 6. During remand proceedings, notice u/s 133(6) was issued to the contractor Shri J. Bhaskaran prop. of M/s AB Constructions who filed reply dated 21.12.2017 along with copy of construction agreement, full details of extra work done and copies of bank statements. However, it was submitted by him that income was below taxable limit and therefore, no books were maintained and no tax returns were filed. Considering the same, it was noted by Ld. AO that the construction agreement stipulated payment of Rs.49.95 Lacs @ Rs.1350/- per square feets. An additional amount of Rs.24.14 Lacs was stated to be paid by the assesse....
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....nbsp; A Total LTCG for the A.Y.2014-15 = Rs. 1,22,06,105/- B Total cost of investment on New House Property = Rs. 1,17,99,180/- C Deduction u/s. 54F = LTCG X Investment in new property = B X C Total net sale sale consideration on sale of Land A B X C = 12206105 x 11799180 = Rs.78,26,434 A 18402000 From the above Taxable LTCG for the A.Y. 2014-15 is worked as under: Total LTCG for the A.Y 2014-15 : Rs. 1,22,06,105/- Less: Deduction u/s. 54F : ....