9911796707
TMI Blog2015 (9) TMI 434X X X X Extracts X X X X X X X X Extracts X X X X ..... The facts of the case, briefly are that the assessee is an individual filed his return of income for the A.Y. 2007-08, declaring total income of Rs. 2,97,400/-, comprising of Income from business of and Income from other source. Besides, he declared agricultural income of Rs. 1,92,300/-. During the financial year relevant to A.Y. 2007-08, the assessee has received Rs. 35 lakhs upon relinquishment of his right in the property at Sy. No. 335, Puppalaguda Village, Rajendra Nagar Mandal, Ranga Reddy district consequent a court settlement, which he had entered in to an agreement of sale dated 24-09-2000 by paying an advance of Rs. 2,50,000/-. During the same financial year he had purchased another residential house property at Plot No. 64, Diamo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tial house for his self- occupation. The AR, further submitted that the house is remodeled/reconstructed as single residential house after obtaining plan approval from the civic authorities vide plan sanction copy dated 28-12-2006 along with letter of permission for construction, which was available in the file. The AR, claimed that the house was assessed to municipal tax as a single unit bearing no. 3-28/63/64 and municipal authorities fixed tax of Rs. 4200/- which was paid by the assessee vide receipt dated 10-04-2008, which was also filed before the Assessing Officer. The authorized representative further argued that the Assessing Officer was not right in allowing partial relief of Rs. 21,81,240/- and should have allowed full deduction o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eed. But, the claim of the assessee is that, he had remodeled/reconstructed the house by making single residential unit after obtaining plan sanction and permission for construction from municipal authorities and he submitted a sanctioned copy along with permission for construction letter issued by the local authorities. A careful study of the translated copy of permission for construction letter dated 28-12-2006 indicates that the permission is for new construction. The same letter show that the construction should be completed before 28-12-2007. But the lower authorities failed to examine, whether the assessee has constructed new building or not as claimed by him within the stipulated time frame as per section 54F. The AO, just plainly ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thin a period of one year after the date of transfer of the original asset or constructs any residential house, other than new asset within a period of three years after the date of transfer of original asset. The act puts strict restriction as to acquisition of another new house, other than new asset within the time stipulated therein, but it does not restrict construction of single residential house on two plots. In the present case on hand, the assessee claims that he has purchased two adjacent plots and made into a single residential house by obtaining single plan sanction from the local authorities. The assessee has furnished the copies of sanction plan copy and building construction permission letter which was before the lower authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nspected by his counter part in Bangalore. This the AO did not do. It cannot be gainsaid that the AO is amply empowered to get such an inspection done. (Para 11) Apropos the AO's observation that no approval was shown to have been obtained by the assessee, nor any payment of statutory dues had been shown to have been made by the assessee, concerning the modification to the house, it is available from the statement of facts filed before the CIT(A), that there was no question of the assessee obtaining any approval or making any payment, since the modification was done by the developer himself, as per the plans, the approval whereof was obtained directly by the developer. Otherwise also, the assessment order does not evince any query in this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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