2025 (6) TMI 1476

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....n and claim of refund. Subsequently notices u/s 143(2) and 142(1) of the Act were issued and served on the assessee through ITBA portal. In response, assessee filed relevant information as called for. 3. During the assessment proceedings, the AO observed that in the original return of income, assessee declared Long Term Capital Gain (LTCG) to the extent of Rs. 62,72,665/-. However, in revised return of income, assessee has declared LTCG of Rs. 22,65,071/-. AO observed that assessee has claimed additional deduction u/s 54F of the Act to the extent of Rs. 61,41,102/- in place of Rs. 21,33,108/-. In order to verify the same, notice u/s 133(6) was issued to Smt. Babita Jindal. She submitted copy of sale deed of the property. On perusal of the same, AO observed that assessee has sold plot of land for a consideration of Rs. 86 lakhs to three parties as mentioned at page 2 of the assessment order. Further he observed that assessee had claimed deduction u/s 54F of the Act amounting to Rs. 61,41,102/-. It was submitted before him that assessee had booked property on 14.03.2013. The assessee had taken a loan from HDFC Bank Ltd. and later the property was registered only on 21.12.2018. By re....

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....een allowed. 4. That the learned CIT(A) had failed to appreciate that the provisions of section 69B cannot be invoked, unless & until it is established by the LT. Authority that during the previous year relevant to the assessment year under consideration, the assessee had made certain investment whose amount exceeded the amount recorded in the books of account maintained by the assessee. 5. That the learned CIT(A) had failed to appreciate that where the assessee had not maintained the books of account, the provisions of section 69B have no applicability. 6. That on the peculiar facts of the case and in law, the addition of Rs. 825581/- made u/s 69B is liable to be deleted." 7. Before us, ld. AR of the assessee submitted his submissions and also filed synopsis for the sake of clarity, the same is reproduced as under :- "1. The assessee was owning a plot of land in the residential colony known as 'The Greenfields' on Anagpur Road, Sarai Khawaja, District Faridabad (PLOT), having purchased in April 2004. Owing to certain legal hurdles, there was no buyer for the PLOT. 2. With the hope that he will soon get a buyer of the PLOT, the assessee had made a booking with M/....

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....r the date of transfer of the original asset. Property bearing flat no.Cl/0801, the Heartsong, Sector 10B Gurgaon, Haryana, India 122001 was acquired only on 21.12.2018. To avail the benefit u/s 54F of the I. T. Act, 1961, the property had to acquire till 25.09.201B". #25.09.2018, if period of 2 years is counted 8. The learned CIT(A) had passed the order on 08.02.2024 u/s 250, dismissing the assessee's appeal. The comments of the learned CIT(A) and the counter comments of the assessee are summarized hereunder: Comments of the learned CIT(A) Counter comments of the assessee Since the appellant has entered into the agreement four years before the date of Sale/transfer of the original asset for purchase of residential flat, the appellant is not entitled for claiming deduction u/s 54F There is no such condition/bar in the provisions of section 54F that the construction must commence after the date of sale of old asset. For this proposition reliance is hereby placed on the judgement of Hon'ble Karnataka High Court in CIT vs. J.R. Subramanya Bhat (165 ITR 571), judgement of Hon'ble Allahabad High Court in CIT vs. H.K. Kapoor (234 ITR 753) and judgement of Hon'ble....

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.... the sale deed of FLAT was executed in favour of the assessee within the prescribed time, the exemption under section 54F (as claimed by the assessee) should be allowed to the assessee." 8. On the other hand, ld. DR of the Revenue brought to our notice page 7 of the appellate order wherein ld. CIT (A) has discussed the issue of reinvestment of sale consideration within two years from the date of original sale. Since the assessee has not purchased the property within two years from the date of sale, ld. CIT (A) has rightly disallowed the same and relied on the findings of the ld. CIT (A). 9. Considered the rival submissions and material placed on record. We observed that assessee has sold the plot of land on 26.09.2016. The assessee has entered into purchase of flat with Experion Developers Pvt. Ltd. on 14.03.2013. The assessee has submitted copy of the relevant agreement which is placed on record. The assessee has also taken a housing loan to acquire the same property. Since the assessee has entered into an agreement with Experion Developers Pvt. Ltd. on 14.03.2013, it shows that the assessee has intended to acquire the property after construction. This shows that assessee has en....

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....me of hearing, ld. AR submitted his submissions regarding this grounds and also filed synopsis which are reproduced below :- "Apropos addition u/s 69B 10. The learned AO had made an addition of Rs. 825581/- u/s 69B, with the remark "after going through the schedule of Asset and Liability of revised income tax return filed on 03.08.2018, the assessee has reported the value of Flat No. Cl/0801, the Heartsong, Sector 108 Gurgaon, Haryana, India, 122001 of Rs. 1,00,69,431/-. On perusal of the sale deed of the property, value of this property shown to the extent of Rs. 92,43,850/- [88,03,650 (sale consideration) + 4,40,200 (stamp duty value)]. Provision of section 698 of the I. T. Act, 1961 attracts in this case. 11. As per section 69B, where in any financial year the assessee has made investments or ....and the AO finds that the amount expended on making such investments or .... exceeds the amount recorded in this behalf in the books of account maintained by the assessee, for any source of income, and the assessee offers no explanation about such excess amount or the explanation offered by him is not, in the opinion of the AO, satisfactory, the excess amount may be deemed to be t....