TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 1013
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....so issued to the assessee to file income tax return and assessee filed return on 26.04.2022. Thereafter, notice under section 143(2) of the Act was issued to the assessee subsequently other statutory notices were also issued to the assessee. Assessee was asked to produce the documents in support of the claim and assessee submitted reply. From the submission it was noticed that property was gifted by assessee's husband. Thus cost of acquisition to the fair market value from 01.04.2001 and it was claimed to be as Rs. 20 lakhs. The AO noted that as per the compensation paid by the Government for compulsory acquisition as in which land sold by assessee was situated. The compensation of Rs. 3,50,000/- per acre was declared on 06.08.2006. The claim that he has filed plea for enhanced compensation and hence higher value be taken. So market value was considered as per settled value rather than adhoc value. So full value of FMV as on 01.04.001 is Rs. 9,89,754/-. The property was sold on 25.01.2018 for claim of deduction under section 54F of the Act in the Financial Year 2017-18, the amount should have been kept in the capital gain account claimed by the assessee by the due date of filing of....
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....fied the condition of section 54F of the Act. Assessee has withdrawn cash from bank of Rs. 12,74,040/- towards construction expenses for regular payment and paid through cheque of Rs. 7,80,300/- and material expenses of Rs. 20,54,324/- was also paid. Capital asset was sold on 25.01.2018 and sale consideration was deposited in the bank account. Being a house wife and illiterate person, she was unable to think about the deposit in CGAS. There is no doubt on the construction expenses incurred by the assessee submitted before the AO. Accordingly, assessee is eligible for deduction under section 54F of the Act for the new asset as per decision of Hon'ble High Court of Karnataka in the case of CIT vs. Ramachandra Rao reported in (2015) 56 taxmann.com 163 (Karnataka). 5. On the other hand, learned DR relied on the Order of the lower authorities and submitted that she did not satisfy the condition prescribed under sections 54 and 54F of the Act. Assessee should have deposited the amount in CGAS within the due date of filing of return of income u/s 139(1) of the Act, but the assessee neither deposited the amount in CGAS nor filed return under section 139 of the Act. 6. Considering the....
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....roceedings the assessee's representative was asked to substantiate the claim made for exemption under section 54B and 54F of the Act. In reply the assessee stated in the year 2005 i.e. on 31.3.2005 a sum of Rs. 31,00,000/- has been contributed towards house construction. Till that date a loan of Rs. 2,10,00,000/- was taken from Bank which was also utilized for construction. Therefore to the extent of 1,36,00,000/- he claimed exemption for construction of the house. After considering the said reply the Assessing Authority held the assessee has admitted that the land sold is a capital asset. The assessee claimed exemption under Section 54F to the extent of 1,63,23,064/-. He also claimed that he has utilised 1,36,00,000/- for house construction. On the ground that the assessee has not furnished how much amount was in fact utilized for construction after the date of sale, the claim of the assessee for claiming exemption was not accepted. The assessee claimed to have utilized 14,00,000/- in the previous year towards house construction. It is not clear as to whether the amount of Rs. 1,36,00,000/- claimed to have been spent for house construction is inclusive of 14,00,000/- spent ear....
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....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, a residential house (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,- (a) if the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45; (b) if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the net consideration, shall not be charged under section 45: Provided that nothing contained in this sub-section shall apply where - (a) the assessee, - (i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or (ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the o....
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....on 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139 in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit ; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset: Provided that the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then, - (i) the amount by which - (a) the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of the new asset as provided in clause (a) or, as the case may be, cla....
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....to cases which are mentioned in the said proviso. That is to be eligible for the benefit under Section 54F(1) the assessee should not be owning more than one residential house other than the new asset acquired or he should not purchase any residential house other than the new asset within a period of one year after the date of transfer of residential asset or constructs any residential house other than the new asset within a period of three years after the date of transfer of the residential asset. In the entire scheme there is no prohibition for the assessee putting up construction out of sale construction received by such transfer of a site which is owned by him as is clear from the language used. It is open for the assessee to put up a residential construction or to purchase a residential house. It is not the requirement of law that he should purchase a residential site and then putup construction. Therefore, in the instant case admittedly the assessee has purchased a vacant site pri-31.3.2001. He sold the original asset on 27.8.2003 on which date he was already owning a site. In fact even before sale of the original asset he had started construction on such site by availing loa....