TaxTMI 
TaxTMI 
2023 (4) TMI 1097
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....ction u/s. 54F of the I.T. Act, even though the legal formalities of getting the property in the appellant's name did not take place within the stipulated time u/s. 54F of the Act. 3. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was right in allowing the claim of 54F holding that the 09 independent properties are commercial units but not residential units in absence of the evidence in support of so as to categorize the properties as commercial units. Whether the CIT(A) was justified in admitting the additional evidence without disposing off the objections raised by the TPO on the admission of the same." 2. The brief facts of the case are that assessee is a Non-Resident Individual, who filed her Return of Income on 22.07.2019 for the A.Y. 2019-20 admitting the total income of Rs. 5,25,81,858/-. The case of assessee was selected for scrutiny through CASS, for which notice u/s 143(2) of the I. T. Act was issued and served on the assessee. Subsequently, notices were issued to the assessee from time to time and the assessee has submitted her reply through ITBA Module. In the present case, assessee had claimed deduction u/s 54F of Rs.3,63,73....
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.... Syama Reddy mallireddy (PAN : AEYPM9330D) on 23.09.2021 at under construction Residential apartment bearing flat no. 1102, Eleventh floor, situated at survey no. 66/2, RAidurg, Panmaktha village, Gachibowli, Serilingampally mandal, R. R. District to verify construction status of the flat/Apartment, as claimed by the assessee in her submissions, in connection with the pending scrutiny assessment case for the A.Y. 2019-20. As observed at the location site, the said apartment is under construction. There is no proper lift/elevator is present, only a makeshift elevator is fixed through which construction workers/labourers. construction material are elevated. There is no Tiles/Marble flooring present in the corridor/lobby. As there is no name plate present for the flat no. 1102, Sri Praneet, Site manager, ascertained the flat no. 1102 and shown to me, one iron door(looks like temporary arrangement) is fixed at the entrance of the flat, which was locked. From outside it appears, that, no interior works are undergoing inside the said flat. The pictures taken at the site is attached in the enclosure." 9.3 Documentary evidence in the form of photographic evidence is available on record....
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....ers is a related party to the assessee and neither registration of property nor its possession was given to assessee. Therefore, assessee is not entitled to any relief u/s 54F of the Act. Ld. DR further submitted that assessee was owning 7 properties and the Assessing Officer had rightly denied the claim of the assessee as the assessee owned more than one residential property. It was also submitted by the ld. DR that there is a violation of principles of natural justice and Rule 46 of I.T. Rules, 1962 as the assessee had relied upon certain documents and ld.CIT(A) decided the case after relying upon the said documents. He had drawn our attention to Para 13.5 and 13.6 of the order of ld.CIT(A) which was to the following effect : 13.5 The appellant has submitted SRO certificate as well as documents in support of municipal taxes and GST paid during the course of appellate proceedings. The same were admitted by me as they are "Public documents" and could have as well been obtained by the Assessing Officer. 13.6 As the above documents are obtained from a Government authority the same cannot be considered as additional evidence under section 74 of the Indian Evidence Act, 1872. The r....
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....commercial properties let out are attached herewith. Also submitting the copies of Municipal tax paid receipts in relation to the said commercial properties. Sl.No. Property Details House tax paid (Rs.) 1 1st Floor Krishe Sapphire Building 52,691 2 2nd and 3rd Floors Krishe Sapphire Building 4,31,003 3 4th Floor Krishe Sapphire Building 1,74,771 4 6th Floor Krishe Sapphire Building 1,74,771 5 7th Floor Krishe Sapphire Building 1,00,000 6 10th Floor Krishe Sapphire Building 2,36,469 7 Rasoolpura Godown 4,747 8 Uppal Factory 40,607 11. On the basis of the above, it was submitted that there is no violation of conditions under section 54F of the Act in as much as not having one residential house in the city at the time of filing of the return of income. Further, there was no violation of Rule 46A of the I.T Rules, 1962. 11.1 Further, ld. AR also filed a letter dt.24.08.2020 addressed to the assessee by the builder informing that they completed the construction of apartment and that they are handing over the possession to the assessee on the said date. The contents of said letter reads as under : "We are pleased to inform you that we have completed the con....
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....5,000/- towards TDS to the builder. Referring these transactions, the assessee had submitted before us that the substantial amount had already paid by the assessee to the builder and therefore, the assessee was entitled for the benefit u/s 54F of the Act. He relied upon various decisions cited hereinabove. In our considered opinion, for the purposes of claiming deduction u/s 54F of the Act, it is essential that the assessee within a period of 2 years on which the transfer took place purchased residential house in India. 14. In the present case, though the assessee had paid more than 80% of the payment to the builder, yet a substantial amount of more than rupees Rs.1 crore was to be paid by the assessee to the builder, the balance payments were made beyond the time provided by the Act. In the light of the above, it has to be decided on the facts whether the assessee had purchased the residential house within four corners of section 54F of the Act or not. Though there are various decisions which are mentioned hereinabove in the submissions of the assessee, however, those are required to be examined by the lower authorities in the light of new facts namely, registration of sale deed ....