TaxTMI 
TaxTMI 
2025 (8) TMI 1095
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....tances of the case, the order passed by the learned Commissioner Income Tax (Appeals). Income Tax Department, National Faceless Appeal Centre (CIT(A), ITD, NFAC)) a bad, both in the eye of law and on the facts. 2. On the facts and circumstances of the case, the learned CIT(A), ITD has erred both on facts and in law in passing the order ex-parte without providing the assessee adequate opportunity unity of being heard in violation of principle of natural justice 3. On the facts and circumstances of the case, the learned CIT(A), ITD has erred both on facts and in law in not considering the written submission filed by the assessee before CIT(A)-11, New Delhi and CIT(A)-34, New Delhi while passing the order. N.P 4. (1)....
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....zed wholly or partly for the purchase or construction of the new asset, shall be chargeable to tax under section 45 of the Act as income of the previous year in which the period of three years from the date of the transfer of the original asset expires. The appellant craves leave to add, amend or alter any of the grounds of appeal." 3. Brief facts of the case are that, the Assessee filed income tax return declaring total income of Rs. 79,49,440/-. The case of the Assessee was selected for limited scrutiny under CASS for the reason that Value of property transferred as reported in AIR is higher than the value of property transferred as reported in Return of Income (AIR 007 and Schedule CG of ITR), Sale consideration of property i....
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....the Act. The Ld. Counsel relying on plethora of Judgments sought for allowing the Ground No. 4 & 5 of the Assessee. 6. Per contra, the Ld. Departmental Representative submitted that the new residential property was purchased on 20/03/2017 i.e. two years one month six days after the transfer of original capital asset. As per the said sale deed, the seller has completed the construction of Villa as per the plan dated 30/06/2015 and the seller has delivered vacant physical peacefully possession of the villa to the Assessee. Therefore, submitted that the Assessee has not construed a new residential house, but in-fact purchased fully constructed house, thus, the Assessee cannot avail deduction u/s 54F of the Act. The Ld. Departmental Represen....
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..../-vide sale deed dated 20/03/2017 and further claimed to have incurred cost of construction of Rs. 57,25,000/- The cost of construction has been paid on 24/07/2017 and 31/07/2017 from the bank account maintained under capital gain accounts scheme. The Ld. A.O. made disallowance of Rs. 1,80,85,057/- holding that new residential property was purchased on 20/03/2017 i.e. after two years one month six days after the transfer of the original capital asset and as the period between the buying of residential property and selling of original commercial property is more than the eligible period, the Ld. A.O. was of the opinion that the eligibility conditions for claiming deduction u/s 54F of the Act is not satisfied. As observed earlier, it is not i....
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.... support the shelter and protect the said Villa and adequate preventive maintenance of interior of the said Villa which are essentially required further as there is an immediate need for few sewage pipes, paint, flooring works, interior works and so on at the cost of the purchaser. The Assessee incurred construction expenses and made the payment on 24/07/2013 and 31/07/2013, which are well within the three year time frame prescribed u/s 54F(1) of the Act for construction of a new residential house. Thus, the Assessee has utilized the amount deposited in CGAS Account well within the stipulated time line for acquisition and construction of new residential property. 10. The Ld. A.O. observed that the Assessee claimed cost of improvement of ....
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.... the property with grill work and attending to other repairs. Section 54F of the Act provides that if the cost of the new asset, which is to be taken into consideration while determining the capital gain, the words used is "cost of new asset" and not "the consideration for acquisition of the new asset". In law, it is permissible for an assessee to acquire a vacant site and put up a construction thereon ar the cost of the new asset would be cost of land plus (+) cost of construction On the same analogy, even though he purchased a new asset, which is habitable but which requires additions, alterations, modifications and improvements and if money is spent on those aspects, it becomes the cost of the new asset and therefore, he would be entitle....