AI Drafter 
TaxTMI 
TaxTMI 
2024 (5) TMI 93
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....nd circumstances of the case and in law, the Ld. CIT(A) was right in extending the assessee company the benefit of section 54 of the Income Tax Act, 1961 on the ground that the residential house so claimed by the assessee was indeed fit for dwelling purpose when no basic amenities like proper water and electricity connection was available". "3. Whether on the facts and circumstances of the case and in law, the LD. CIT(A) was right in extending the assessee company the benefit the section 54 of the Income Tax Act, 1961 when the so called residential house was just a makeshift/temporary arrangement made of plywood wall and plywood roof having genset for electrification and around 300 litre syntax for water usage/supply". "4. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was right in extending the assessee company the benefit of section 54 of the Income Tax Act, 1961 effectively on the purchase of agricultural land as against residential house mandated u / s 54 of the Income Tax Act, 1961". "5. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was right in law in ignoring the decision of the Hon'....
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...., the house had not been constructed till 13.11.2017. Accordingly, vide order-sheet entry dated 13.11.2017, the assessee was asked to show cause as to why deduction claimed u/s 54 of the Act should not be disallowed as the construction of the house was not completed on or before 25.09.2017, as per the mandate of Section 54 of the Act. No reply was filed by the assessee on the appointed date. Learned AO on 27.11.2017 sought clarification from the learned AR of the assessee in the form of questions and answers, which are reproduced hereunder: "Q.1 When the property 1/7 Shanti Niketan, New Delhi - 110002' was sold? A. September 25, 2014 Q.2 When did you purchase the new property 'Khewat No. 76, Khatoni No. 76, Village Bandhwari, Sohna, Distt. Gurgaon'? A. March 12, 2015 Q.3 What was the nature of property in Q.2? A. Agricultural land (suitable for construction of a residential house? Q.4 What is the present status of the property in Q.2? A. As per assessee, there is a boundary wall, 1 bedroom accommodation, toilet (attached), and 1 guard room. Regarding electricity supply we are not aware of present si....
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....eep Hooda) 1. One makeshift guardroom (make plywood) of 7x6 feets. One cylinder and one gas stove along with some utensils were found in the guard room, on which guard Sh. Padam Singh prepares his daily food items. 2. One similar room of plywood of 16 * 12 feet was also there, with toilet attached, in which some furniture was lying. Nobody lives there except than guard. 3. No electricity connection was there on the land. For electricity genset is used. 4. No water connection was found in the premises. Only source of water was found to be a syntax tank of approximate 300 litres. 5. All the above makeshift structures were constructed in a corner of the land. The rest of the land i.e. 1.75 acres was lying simply vacant. 6. Lastly, the land was not having a cemented boundary walls. On three sides it was encircled by barbed wires and cemented pillars." Office superintendent Inspector ACIT, Circle-22 (2)" 7. Based on the Inspector's report again the final show cause notice was issued to the assessee as to why deduction u/s 54 of the Act should not be denied. The learned AO observed that any residential house should h....
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....he learned AO in the assessment order which is also reproduced in this order hereinabove. Whether the residential house is situated in urban locality or in rural locality, the basic amenities such as boundary wall, kitchen, wash room, bed room, electricity connection, water connection, are all certainly required in order to have a proper habitation and dwelling thereon. From the aforesaid facts, it is evident that none of these basic amenities are present on the subject mentioned property for which deduction u/s 54 of the Act is claimed by the assessee. Though the assessee might be intending to construct a full fledged residential house on the agricultural land purchased by him, the aforesaid facts clearly bring out that such residential house, having the basic amenities was not constructed by the assessee on or before 25.09.2017 (i.e. three years from the date of transfer i.e. 25.09.2014). Even as late as on 7.12.2017, the Inspector of Income-tax along with Office Superintendent attached to the office of the learned AO, together with the Authorized Representative of the assessee (who appeared before the learned AO), had physically visited the site and had confirmed the aforesaid f....