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TMI Blog2013 (12) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... the sake of convenience. Common grounds of appeals have been raised by both the assessees, which read as under:- 1. That the Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in upholding the addition 11,91,379- made on account of disallowance of exemption under section 54 of the Act which is arbitrary & unjustified. 2. That the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate that the benevolent provisions as enumerated in section 54/54F of the Act ought to be construed liberally and as such the addition upheld is arbitrary & unjustified. 3. That the Ld. Commissioner of Income Tax (Appeals) has further erred in sustaining the addition of Rs.31,000/- n account of cash deposits in the bank| ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... share) in the purchase of the new asset along with his wife and the remaining amount of sale consideration as well as capital gain was invested in the purchase of FDRs etc. and was not utilized for the purchase / construction of the new house in Sector 11, Panchkula. The Assessing Officer accordingl y restricted the exemption u/s 54 of the Act upto the extent of Rs. 23,61,550/-. The Assessing Officer thus allowed a sum of Rs. 11,80,775/- as the exemption u/s 54 in the hands of each of the assessee as against Rs. 23,72,154/- ( ½ share) claimed by each of the assessee. The balance sum of Rs. 11,91,371/- each was added to the income of the assessee. The C IT(A) upheld the order of the Assessing Officer. 4. Shri Daljit Singh Chhabra ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the provisions of Section 54 of the Income Tax Act, the assessee is entitled to the benefit of exemption from capital gains arising form transfer of a residential asset where it invested the capital gains in the purchase of a new residential house. The said section further provides that the exemption is available where the new asset was purchased within the period of one year or two years after the date on which the transfer took place or the assessee has within a period of three years of constructed the new residential house. The Ld. AR for the assessee fairl y pointed out that in case the benefit of exemption u/s 54 is to be allowed to the assessee onl y where investment is made out of the sale proceeds received by the assessee, then ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the course of hearing and hence the same are not admitted.
9. Further in the case of Mrs Neha Abrol, the assessee had filed an application under Rule 11 of the Income-tax Appellate Tribunal Rules for admission of additional ground in relation to the jurisdiction of the Assessing Officer passing the order. The Ld. AR for the assessee during the course of hearing did not press the said additional ground of appeal raised vide said application and hence the same is dismissed as not pressed. In view thereof, ground Nos. 1 & 2 raised by the assessee are allowed.
10. The ground No.3 raised by both the assessees being not pressed are dismissed.
11. In the result, both the appeals of the assessees are partly allowed. X X X X Extracts X X X X X X X X Extracts X X X X
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