TaxTMI 
TaxTMI 
2025 (2) TMI 1530
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....ismissed as withdrawn. 3. Liberty is granted to the assessee to revive appeal in the event application filed by the assessee under VSVS fails to mature. It is further made clear that if the assessee seeks to restore the appeal in the event assessee's declaration made under VSVS is not accepted, the Registry shall not insist for filing of application for condonation of delay, if the Miscellaneous Application for recalling the order is filed beyond time on account of delay in communication of outcome under VSVS. [Revenue. M/s. Nannusamy Mohan (HUF) vs. ACIT in T.C.A. No.372 of 2020 decided on 16.10.2020 by Hon'ble Madras High Court.] 4. In the result, appeal of the assessee is dismissed in the aforesaid terms. 5. Coming to the Department's appeal being ITA No.2064/Del/2024, the Revenue has taken the following grounds of appeal :- "1. The Ld. CIT (A) has erred in allowing the deduction u/s. 54F of the Income-tax Act, 1961 amounting to Rs. 36,07,51,900/- instead of Rs. 28,54,59,401/- made by Assessing Officer in assessment order. 2. The Ld. CIT (A) has erred in allowing the deduction u/s. 54F to the tune of Rs. 36,07,51,900/- without appreciating the fact tha....
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....y is less than the net consideration then deduction u/s. 51 is allowable to the extent to same proportion as the capital gain bears to the net consideration! Regarding this It is submitted that out of sale proceed assessee has purchased one residential property situated at CM617A, Camellias, DLF-5, Sector 42, Gurgaon, Haryana for a consideration of Rs 42,88,55,000/-. On the said property assessee has incurred renovation expenses of Rs 3,65,80,580/- after the purchase of property till the date of sale. Copy of sale deed in substantiation of same is enclosed at Page No to . That calculation of amount of deduction allowable u/s. 54F of Income Tax Act is as under: = Amount of capital gain*Cost of New Residential Property/Net sale consideration =2,29,35,18,366/- * 46,54,35,580/- / 2,32,99,99,881/- = 45,81,48,145/-" 8. After considering the submissions of the assessee, Assessing Officer observed that the assessee has only furnished an Agreement to Sell and no other documentary evidences in support of his claim filed. Further assessee was asked to submit the relevant documentary evidences of renovation expenses to the extent of Rs. 3,65,80,850/-. In res....
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.... extended to 30.09.2021 and further he observed that CBDT has further extended the compliance date to 31.03.2023 vide Circular No.1/2023 dated 06.01.2023 and by relying on the above circulars, he allowed the claim of the assessee by observing as under :- "26. As per the circular the compliances to be made by the tax payer such as investment, deposit, payment, acquisition, purchase, construction or such action by whatever name called for the purpose of claiming by exemption under the provisions contained in section 54 to 54GB of the Act, for which the last date of such compliance falls between 01st April, 2021 to 28th February, 2022 (both days inclusive) may be completed on or before 31st March, 2023. 27. The facts of the present case are to be examined considering this circular. The appellant had incurred Long Term Capital Gains during the Assessment Year 2021-22. The extended last date of filing of Income Tax Return for assessment year 2021-22 in the case of the appellant was 31.12.2021. The appellant had filed his return of income on 30.12.2021. The appellant had time till 31.12.2021 to deposit the unspent amount into capital gains account for the purpose of cla....
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....ill 31.3.2023 is Rs. 36,64,90,148/- (Rs. 29,00,00,000/- + Rs. 88,50,000/- + Rs. 6,76,40,148/-). 33. In view of the above discussion, the appellant is eligible to claim deduction u/s. 54F on the amount of Rs. 366490148/- only. 34. The calculation of deduction under section 54F is as under:- Deduction allowable u/s. 54F Amount of Capital Gains X Cost of New Residential property / Net Sales Consideration. 2,29,35,18,366 X 36,64,90,148 / 2,32,99,99,881 Deduction u/s. 54F = 36,07,51,900/- 35. The assessing officer is directed to allow deduction under section 54F of Rs. 36,07,51,900/- against deduction of Rs. 28,54,59,401/- allowed in the assessment order." 12. Aggrieved with the above order, Revenue is in appeal before us. 13. At the time of hearing, ld. DR of the Revenue submitted that ld. CIT (A) has allowed the claim of the assessee on the basis of additional evidences which were not filed before the Assessing Officer and submitted that Assessing Officer was not given proper opportunity. Further he submitted that it is not clear whether the assessee has more than one house to claim the benefit u/s. 54F of the Act. L....
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....ose Amount 21.01.2022 V and R Contracts Civil Work (Plumbing Work, Stone Jobs, Electrical Works) 5,00,000 04.02.2022 Climate HVAC No bills 5,00,000 04.02.2022 XSYS Solution Dinrail Power Module, Palladiom Ea- 1 Automation V2, IR Devices, power supply, poe switch, access point, sensor 17,50,000 21.02.2022 02.03.2022 04.03.2022 M and R Furnishing M and R Furnishing Halomax Lightening Solution FALL Ceiling, P.O.P. WORK [Panelling Work Wall Paneling, Sitding Door, Door Frame Architrave), Ceiling, Niche Cladding, Electric Box, Tall Unit, Refrigerator Unit. Wicket Banket, Chimney Panel, , Sang Opor Jamping, False Partition,I FALL Celling, P.O.P. WORK [Panelling Work Wall Panelling, Silding Door, Door Frame Architrave), Ceilling, Niche Cladding, Electrte Boce, Tall Unit, Refrigerator Unit, Wicket Basket, Chimney Panel, , Sliding Door lambing, False Partition, I 10,00,000 30,00,000 1,00,000 Light Fitting wiring and electrical works 09.03.2022 V and R Contracts V and R Contracts Civil Work (Plumbing Work, Stone Jobs, Electrical Works) 15,00,000 15.12.2021 Civil Work (Plumbing Work, Stone Jobs, Electrical Works) 10,00,000 28.03.2022 Climate HVAC No bills 32,73,356 ....