2023 (3) TMI 603

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....her on fact and the circumstances of the case, the Ld. CIT(A) erred in holding that the assessee is eligible for claiming deduction U/s 54F of the Income Tax Act, 1961 inspite of knowing the facts that the assessee has neither claimed this benefit during the course of assessment nor provided the complete evidences in support of this claim. 2. Whether on fact and the circumstances of the case, the Ld. CIT(A) erred in allowing deduction u/s 54F of the Income Tax Act, 1961 relying upon fresh evidence without providing an opportunity to the assessing officer for verifying it or calling the remand report? 3. Whether on fact and the circumstances of the case, the Ld. CIT(A) erred in allowing the deduction u/s 54 of the Income Ta....

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....sessment order and submitted that the assessee, by way of show cause notice dated 11.04.2019 was asked to furnish the documentary evidences to fulfill the conditions laid down in section 54F of the Act and the assessee submitted her reply dated 29.11.2019 which was not tenable as the assessee only stated that the exemption u/s 54F of the Act is also otherwise allowable to the assessee on the capital gain income. The ld. Sr. DR submitted that para 3.2.3 of the assessment order clearly reveals that the AO, after considering the reply of the assessee rightly noted that the assessee while making an alternative claim, has simply stated that the criteria with regard to investment of consideration received on sale of any existing property has been....

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....lowed to take a different stand for taxing the amount of long-term capital gain in the hands of the assesee despite the clear fact that the assessee had made investment of Rs.7,42,40,524/- in purchase of residential property during the relevant assessment year. 6. The ld. Counsel also submitted that the assessee did not file any new evidence supporting the claim which was not before the AO during assessment proceedings, therefore, the allegation of the Revenue that the ld.CIT(A) has relied on fresh evidence without providing an opportunity to the AO for verifying it or calling the remand report. Therefore, the grounds of the Revenue may be dismissed by upholding the order of the ld. First appellate authority. 7. On careful considerati....

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....eed of both the plots wherein the property description is described as a plot. Furthermore, also at the time of executing agreement to sell on 02-09-2016, the said property was described as a plot. It is pertinent to mention here that there is no relevance whether there was a house in the past or not, the only fact is that, at the time of executing the sale deed the capital assets is a plot and therefore, the exemption claimed by the assessee U/s 54 is disallowed." 5.2 The AO further noted that the consideration received by the appellant was on account of sale of 2 plots of land located at Radisson Road, Lucknow. As the said property was not a residential house, deduction u/s 54 could not be claimed by the appellant as the same was....

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....de his submission dated 24/02/2020 stated that a residential property was acquired in Mumbai. The appellant also submitted that the bill of the house property was given during the course of assessment proceedings also. The documents related to purchase of the said flat on 14/09/2016 has also been furnished by the appellant. It is therefore clear that the appellant has invested an amount of Rs.7,42,40,524/- in purchase of residential property for the said year. 5.4 The appellant has also stated that the only one other residential house was owned by the appellant at the time of acquisition or investment in residential property in FY 2016-17. The condition required under subsection (2) of section 54F is also herewith satisfied. The ap....

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....of sale of plots and had invested an amount of Rs.7,42,40,524/- in purchase of residential property during the relevant financial period in which the property was sold. It has also not been controverted that at the time of selling the plots and purchasing residential property, the assessee was owning only one other residential house during FY 2016- 17. For making claim u/s 54F, the cost of acquisition of house and full consideration, its fair market value is not relevant for the purpose of adjudication of claim of the assessee because the full consideration has to be considered for eligibility for deduction u/s 54F of the Act and, in the present case, the assessee has demonstrated that she has invested higher amount in purchase of residenti....