TaxTMI 
TaxTMI 
2022 (9) TMI 158
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....ng to the Revenue's sole substantive grievance seeking to revive the assessee's section 54F deduction disallowance of Rs.3.25 crores made by the Assessing Officer in his section 143(3) r.w.s. 254 order dated 28-11- 2016, we note that the CIT(A)'s detailed discussion to this effect reads as under : "5. Ground nos. 1 to 5: - As all these grounds relate to the common issue of disallowance of deduction u/s. 54F, therefore the same are disposed of together as under. 5.1 During the appellate proceedings, the appellant filed written submissions which are reproduced as under: "Contention:- 1. The AO received information from Addl. CIT, Range-3, Pune that during survey action u/s. 133A of the I.T. Act, 1961 in the....
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....ed that the rights were granted to the assessee for development and sale of flats/units and no property was purchased by the assessee. Therefore, he drawn the conclusion that the investment made by the appellant is not for purchase of house property but had entered in to a development agreement for developing the said property. This conclusion drawn by the AO in ale year 2016 is factually incorrect, which is evident from the fact that the appellant had not made any attempt to develop the said property. On the contrary it was brought to the notice of the AO during the course of assessment proceedings that the said property is sold after a period of 3 years as a residential property. Therefore, it is submitted that the conclusion drawn by the....
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....and have the same connotation. The phrase 'residential house' is not defined in the Act. As such, it has to be understood in the normal sense of a house, which could be used for a residence. The term 'residential house' came for discussion before the Orissa High Court in a wealth-tax case in CWT v. KB. Pradhan [19811 130 ITR 393/7 Taxman 220 wherein it was held that the word 'house' used for residential purposes would not include a house property in the process of construction, which is incomplete and not habitable. Only if the house has reached a stage of construction by which it is available for occupation and is otherwise habitable, the assessee can regard the property as being in the nature of a resident....
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.... development, action of AO to reject the exemption is unjustified, as it is proved beyond doubt that the property purchased is a bungalow along with the land appurtenant thereto. b. As per municipal record it is residential house property c. Appellant has not carried out any development on the said property d. Appellant had sold the said house property as it is in the year 2011-12 r.t. A.Y. 2012-13 and long-term loss is accepted u/sec. 143(1) of the Act. Copy of acknowledgement of return of income, computation sheet and Balance Sheet for F.Y. 2011-12 are enclosed (Refer page no.123-128) e. Description of property in the development agreement and the sale deed dated 24.08.2011, is the same. In the....
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....t the office of the Sub-registrar, Haveli, Pune-19. On perusal of the agreement, it is observed that the owner of the property namely, MuzulTldar family through their attorney M/s. Saijyoti Associates entered into a development agreement with the appellant on 14/01;'2008. In para 2 of page no.'" of the agreement, it is clearly mentioned that the lump-sum amount of Rs.3,25,00,000/- has been agreed as a consideration and the Developer i.e. the appellant shall pay the agreement amount to the Assignor, according to unanimous directions of the owners and the other consenting parties and subsequently the same were paid through cheques. Thus, it is established fact that the appellant had acquired a residential property in the form of an ol....