TaxTMI 
TaxTMI 
2022 (10) TMI 490
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....ssessing Officer has erred in disallowing the claim of the assessee for deduction under section 54 and 54F of the Act while passing order 263/153A/l43(3) under section since the particulars relating to deduction claimed u/s section 54 and 54F of the Act were already forming part of regular books of accounts and no incriminating materials whatsoever were found during the course of search. The Ld. CIT (A) has erred in confirming the action of the Ld. Assessing Officer. (2) That in the facts and circumstances of the case, the Ld. Learned Assessing Officer erred in concluding that the appellant is not eligible to claim deduction under section 54 and 54F of the Act. The Ld. CIT (A) has erred in confirming the action of the Ld. Assessing Office....
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....n from ICICI Home Finance Ltd. in May, 2004 and installments were paid till March, 2010. (iii) Possession of the aforesaid flat was obtained by the appellant on 09.03.2009. (iv) Against the LTCG earned by the assessee as mentioned above, the appellant claimed exemption u/s.54 and 54F. However, the Assessing Officer disallowed exemption claimed by the appellant under section 54 and 54F of the Act on the ground that the flat was booked with the builders for construction much before the date of transfer of capital assets (which resulted capital gains). The moot question that arises is when the appellant is eligible for exemption u/s.54 and 54F of the Act. It should be construed from the date of booking of the flat or date of possession....
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....g Scheme of the D.D.A. shall be treated as cases of construction for the purpose of Capital Gams." Further, reliance is placed on the various case laws, wherein it has been held that the flats constructed by the private developers are also covered by Circular 471 and 672 and therefore, entitled for deduction u/s.54 with reference to date of booking. (i) Kishor H. Galaiya Vs. Income Tax Officer, Ward 8(2)(3) [2012) 24 taxmann.com 11 (Mumbai) (ii) Assistant Commissioner of Income Tax, Circle 25(3) vs. Smt. Sunder Kaur Sujan Gadh (2005) 3 SOT 206 (Mumbai). (iii) Sri Ved Prakash Rakhra vs. Assistant Commissioner of Income Tax, Circle 6(1), Bangalore (ITAT). (iv) Mrs. Jyoti Arun Kothari Vs. ITO [(TS-737-ITAT-2013 (Mumbai)) (v) CIT vs....
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.... the Act to claim the deductin with respect to 'construction' of property. For claiming deductin under the condition of 'construction' of property', the property must be constructed after the transfer of capital assets, resulting in Long Term Capital Gain, where from exemption u/s.54 and 54F is claimed and not before the date of transfer of capital assets. Hence, the criteria at section 54 and 54F of the Act is not satisfied and thus the assessee is not eligible for claiming deduction of the same. Hence, appeal filed by the appellant is dismissed. 5.1. Incidentally the assessee has taken an opposite view in the case of Mr. Nithin Sonthalia (Associated Person) for A.Y.2014-15 and in the case of Kusumlata Sonthalia (A.Y.2015-16).There....