2022 (8) TMI 1190

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....ant's claim u/s 54F of Rs. 1,16,75,175/- made by the A.O. Appellant prays to allow the said claim for deduction u/s 54F in computing the capital gain. 2. CIT(A) has erred in not granting just and equitable relief to the appellant. 3. CIT(A) has erred in not cancelling interest charged u/s 234B. Appellant prays for cancellation of interest charged u/s 234B 4. Appellant prays to add, alter, amend, take additional ground/s and/or withdraw the ground/s during appeal proceedings. Appellant prays to allow the same." 2. The brief facts in this case are that the assessee claimed exemption u/s 54F of the Income-tax Act, 1961 (hereinafter referred to as "the Act") from long term capital gain on sale of shares in a privat....

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....he assessee deemed owner. The ld. CIT(A) had upheld the findings of the ld. A.O. 3. Before us, the assessee has submitted a copy of registered gift deed and has also reiterated the submissions placed before the subordinate authorities. The ld. A.R of the assessee submitted that for the purpose of section 27(i) of the Act which is a deeming provision is limited to sections 22 to section 26 of the Act and not for capital gain. The assessee further submits that he is satisfying the conditions laid down u/s 54F proviso (a) wherein on the date of transfer of capital asset the assessee was not even owner of one full house property. The assessee in this regard places strong reliance on the decision of Hon‟ble Madras High Court in the case....

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....erves that in the instant case, it has been categorically held by the CIT(A) as well as by the Tribunal that section 27 clause (i) of the Act is a deeming provision applicable only for sections 22 to 26 of the Act in computing annual value of the property and as such the deeming provision cannot be extended to deny exemption u/s 54F of the Act. Their Lordships were of the considered view that section 54F of the Act for granting exemption applies for the purpose of capital gain of transfer of certain capital assets not to be charged in investment in residential house. In the context of present case, section 54F would apply as an independent provision. Therefore, view of the Tribunal cannot be held to be at fault. 4. Before us, the assesse....