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TMI Blog2014 (9) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... is seen that the assessee had clearly expressed his intention of constructing a residential house by pointing out construction of compound wall and levelling of the site had been carried out. It is also seen from the photographs filed before us that there exists a house constructed on the site purchased by the assessee. The question is as to, when the construction started. The date on which the construction is completed may not be very material in the light of decision of CIT v. Sambandam Udayakumar [2012 (3) TMI 80 - KARNATAKA HIGH COURT]. The assessee has filed before us the letter which indicates construction activities having been carried out over the site purchased by the assessee within a period of three years from the date of tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration in this appeal is as to whether the Revenue authorities were justified in rejecting the claim of the assessee for exemption under section 54/54F of the Act. 3. The assessee is an individual. The assessee sold a vacant site at Banashankari (BSK)-III Stage on September 22, 2007 for a total consideration of ₹ 24 lakhs. The assessee purchased another vacant site on May 15, 2008 for a consideration of ₹ 11,62,000 at BSK-VI Stage. The assessee filed return of income for the assessment year 2008-09 on July 25, 2008 declaring income of ₹ 10,57,479. Under the head long-term capital gain , the assessee declared an income of ₹ 10,08,112 which was computed by the assessee as follows : Long-term capital gai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22,82,376 Exemptions Investment Exemption 54 : Transfer of residential property 12,74,264 12,74,264 12,74,264 Capital gains 10,08,112 4. The assessee gave the following note with regard to its exemption under section 54/54F of the Act: Note 4 : The details of construction of compound wall 200102 at Site No. 330. During the year 2001-02 I had constructed a compound 4 feet height, right side and front side measuring about 60 feet with 10 feet gate. Nature of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of three years from the date of approval of the capital asset. The assessee also claimed that there was no question of deposit of the capital gain in the capital gains account as the major portion of capital gain had been reinvested in purchase of the vacant site. The assessee further pointed out that it had constructed a residential house within the period allowed under law. The assessee pointed out that construction had commenced before three years and it is not necessary that it should have been completed within the period of three years, as was held by the hon'ble High Court of Karnataka in the case of CIT v. Sambandam Udayakumar, 251 CTR 317. The assessee pointed out that construction had commenced in 2009 and was completed later. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of his claim. For all the above reasons, the Commissioner of Income-tax (Appeals) confirmed the order of the Assessing Officer. 8. Aggrieved by the order of the Commissioner of Income-tax (Appeals), the assessee has filed the present appeal before the Tribunal. Learned counsel for the assessee filed additional grounds of appeal in which it is urged that the Assessing Officer ought to have issued notice under section 143(2) of the Act within six months from the date on which the assessee filed return of income which was on July 25, 2008. Failure to do so renders the entire reassessment proceedings a nullity. 9. We have considered this submission of the assessee and are of the view that the same is without any basis. The first return o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emonstrate that construction of house had commenced well within the period of three years from the date of transfer of capital asset. 13. The learned Departmental representative placed reliance on the order of the Commissioner of Income-tax (Appeals). 14. We have considered the rival submissions. We are of the view that in the proceedings before the Assessing Officer as well as the Commissioner of Income-tax (Appeals), the assessee was not properly represented. From the computation of total income filed by the assessee, it is seen that the assessee had clearly expressed his intention of constructing a residential house by pointing out construction of compound wall and levelling of the site had been carried out. It is also seen from th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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