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2017 (7) TMI 254 - ITAT CHENNAIReopening of assessment - whether a claim of a new deduction can be allowed during the course of reassessment proceedings consequent to the notice under section 148? - claim of exemption under section 54F - Held that:- A matter not agitated in the concluded original assessment proceedings also cannot be permitted to be agitated in the reassessment proceedings unless relatable to the item sought to be taxed as ‘escaped income’. In this case the assessee has claimed deduction of exemption under section 54F of the Act for investment made in the residential house property out of sale consideration of agricultural land, which was found to be escaped assessment, and no new claim of deduction has made during the course of reassessment proceedings. SEE Sun Engineering Works (P) Ltd. v. CIT [1992 (9) TMI 1 - SUPREME Court] Thus we set aside the orders of authorities below and held that the assessee has rightly claimed deduction of exemption under section 54F of the Act during the course of reassessment proceedings. - Decided in favour of assessee. Entitlement to benefit under section 54F - investment in house property made in the names of the assessee’s minor daughters - Held that:- In the present case, the new house property was purchased by the assessee in the name of his daughters, legal heir & dependents and not in the name of any stranger or somebody, who is unconnected with the assessee. Therefore, we are of the considered opinion that the assessee is eligible to claim deduction of exemption under section 54 of the Act.- Decided in favour of assessee. Investment in 40% undivided share in the house property by way of Deed of Mortgage by Conditional Sale - Held that:- In the present case, the arrangement between the assessee (mortgagee) and vendor (mortgagor) to transfer the house property through a 'Deed of Mortgage by Conditional Sale' grossly falls within the definition of transfer under section 2(47)(vi) of the Income Tax Act, therefore the said transaction is a purchase made by the assessee on entering the 'Deed of Mortgage by Conditional Sale'. The agreed consideration of ₹.21,00,000/- was paid by the assessee on 19.09.2005, which is the day on which the 'Deed of Conditional Sale' through mortgage has been executed and registered. Since, the assessee has also taken the possession of the property on the said date, the transaction has become a deemed transfer even under section 53A of the Transfer of Property Act, 1882. Thus we are of the opinion that the assessee is legally eligible to claim deduction under section 54F of the Act. - Decided in favour of assessee. Eligibility for deduction u/s 54EC - investment in Bonds specified under section 54EC after a period of six months from the date of transfer but before the due date specified under section 139 - Held that:- If the assessee has invested in the NABARD bonds by end of February, 2005, then he can very well claim the exemption, but, he has invested in the bonds only on 10.06.2005 i.e., fourth month after lapse of six months period provided in the statute. Therefore, we are of the considered opinion that the authorities below have rightly rejected the claim of deduction under section 54EC of the Act. Thus, the ground raised by the assessee is dismissed.
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