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TMI Blog2015 (12) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... should be allowed against the long term capital gain. However, the AO has not computed the long term capital gain, but allowed the same against the sale value. Thus the deduction claimed by the assessee u/s 54/54F requires fresh examination at the end of the assessing officer. - Decided in favour of assessee for statistical purposes. Assessment of rental income under the head Income from house property instead of assessing the same as Business income - Held that:- Ld A.R placed reliance on the recent decision rendered by the Hon’ble Supreme Court in the case of Chennai Properties & Investments Ltd.[2015 (5) TMI 46 - SUPREME COURT] Hence, we are of the view that this issue also requires fresh examination in the light of the decision of H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Term Capital Gains Rs..2,55,19,581/- Less: Investment u/s 54 Purchase of Residential House At B-3, Styanand, Thane ₹ 42,13,760/- Add: Cost of improvement Rs..9,59,270/- Less : Exemption claimed in AY-2005-06 Rs..5,00,000/- Rs..46,73,030/- Income from Long Term Capital Gains Rs..2,08,46,551/- 3. The assessee claimed deduction of the cost of new residential house purch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the tax authorities, we notice that the assessee as well as the tax authorities has not properly applied the provisions of sec. 54 and 54F. The discrepancies/fallacies noticed by us are listed out below:- (a) In the grounds of appeal, the assessee is claiming that the exemption u/s 54 of the Act was denied, which resulted in an addition of ₹ 2,40,79,181/-. However, in the return of income, total deduction claimed was only ₹ 46,73,030/-. (b) The deduction allowed u/s 54 and 54F is property specific. Hence, we are unable to understand as to how the assessee and AO could deduct the amount of ₹ 5.00 lakhs on the reasoning that the deduction to that extent was allowed in the immediately preceding year. We are unable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... located at RH No.16, Madhuban CHS Ltd. The date of sale of the above said flat was not brought on record. Similarly, the dates of sale of FSI and land were also not brought on record. The eligibility of the assessee to claim deduction u/s 54F should be ascertained as per the number of residential houses available on the date of sale of the long term capital asset other than the residential house property. Hence, the date of sale of the above said assets is crucial to determine the eligibility of the assessee to claim deduction u/s 54F of the Act. (f) The deduction u/s 54 should be allowed against the long term capital gain. However, the AO has not computed the long term capital gain, but allowed the same against the sale value. (g) In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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