2023 (5) TMI 1006

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....2017-18, dated 23/01/2019 arising out of the order passed U/s. 143(3) r.w.s 147 of the Income Tax Act, 1961 [the Act] for the AY 2011-12. 2. Briefly stated the facts are that the assessee, a resident of USA, sold certain immovable properties during the assessment year 2011-12 and claimed exemption U/s. 54F of the Act. Since the assessee has not filed any income tax returns for the AY 2011-12, notice U/s. 148 was issued on 19/03/2015 and served on 17/4/2015 to Sri Tummala Kishore Kumar, GPA holder of the assessee. Since there was no response from the assessee, notice U/s. 142(1) of the Act dated 14/7/2015; 18/08/2015 and 20/10/2015 was issued and served on the assessee. In response to the above notices, the assessee's Representative Mr. M....

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.... not be liable for exemption U/s. 54F. Thus, if the explanation of the assessee is accepted then the time limit / cut off mentioned in the statute will be redundant. 3. The CIT(A) should have held that the condition, imposed U/s. 54F of the Act, is that the new building should have been constructed within three years from the date of sale." 5. At the outset, the Ld. DR submitted that the assessee owns one residential house in USA. The Ld. DR further submitted that since the assessee owns one residential house at USA, exemption U/s. 54F cannot be claimed by the assessee. The Ld. DR further pleaded that since the assessee has not invested in the property within a period of three as mandated in section 54F of the Act, the benefit o....

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....nvestment in residential house. 54F. (1) Subject to the provisions of sub-section (4), where, in the case of an assessee being an individual or a Hindu undivided family, the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, one residential house in India (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,- ....

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....t, the benefit of deduction U/s. 54F of the Act cannot be availed by the assessee. The Act is also silent on the fact whether the property should be situated in India or outside India. 8. The submission of the Ld. DR also holds merit on the ground that the assessee is a co-owner of the property situated in USA which was evidenced by the property record details submitted by the Ld. DR. Further, there is also merit in the argument of the Ld. DR that the assessee habitually resides in the property situated in USA and has disclosed the address of that property in the assessee's Passport. Under these circumstances, the contention of the Ld. AR that the property at USA is a Farm House cannot be accepted. Therefore, we are of the considered vie....