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TMI Blog2018 (6) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... m is already available before the AO. In this case, admittedly, all necessary facts required for deduction u/s 54F are already available before the AO as the assessee has made a claim u/s 54 - since the provisions of section 54 / 54F are beneficial provisions, which need to be construed liberally so as to allow the benefit, if other conditions specified in the said sections are fulfilled. Hence, we are of the considered view that the AO was erred in not allowing assessee’s claim of deduction u/s 54F. Hence, we set aside the issue to the file of the AO and direct him to admit assessee’s alternate claim of deduction u/s 54F and allow such claim if assessee has fulfilled all conditions specified therein. - Appeal filed by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance of exemption claimed u/s 54 / 54F of the Income-tax Act, 1961 towards long term capital gain derived from sale of property. 3. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A). Before the CIT(A), the assessee has filed written submission to argue that by virtue of allotment letter issued, she acquired a right to obtain conveyance of immovable property which constitute capital asset within the meaning of section 2(14) of the I.T. Act, 1961. Since she has transferred long term capital asset, being right in an immovable property, the gain arising out of such transfer is eligible for exemption u/s 54 / 54F of the Act if the consideration received from the property has been re-invested in purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is a primary requirement for deduction u/s 54. 3.4 The second issue to be decided here is whether the AO should have allowed deduction u/s 54F as requested by the appellant during the assessment proceedings. In the grounds of appeal as well as in the written submissions the appellant has tried to claim that both section 54 and section 54F are on the same footing. However, these two sections are different in their scope, applications and eligibility conditions. First of all, in section 54, the computation of deductions is with reference to the amount of capital gain while in section 54F computation of deduction is with reference to the cost of new asset. Further one of the basic condition for claiming deduction u/s 54F is that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellate authorities to decide the issue, although it has restricted the powers of AO to admit new claim without filing revised return. Therefore, the Ld.CIT(A) was incorrect in rejecting deduction claimed u/s 54F of the Act. 6. On the other hand, the Ld.DR strongly supported the order of the CIT(A). The Ld.DR further submitted that the assessee failed to make a new claim by filing revised return and hence, the AO has rightly rejected the claim of the assessee in the light of the decision of Hon ble Supreme Court in the case of CIT vs Goetze India Ltd (supra) which categorically restricts the power of AO to admit any new claim without filing revised return of income. 7. We have heard both the parties and perused the material avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s already available before the AO. In this case, admittedly, all necessary facts required for deduction u/s 54F are already available before the AO as the assessee has made a claim u/s 54 of the Incometax Act, 1961. We further observe that since the provisions of section 54 / 54F are beneficial provisions, which need to be construed liberally so as to allow the benefit, if other conditions specified in the said sections are fulfilled. Hence, we are of the considered view that the AO was erred in not allowing assessee s claim of deduction u/s 54F. Hence, we set aside the issue to the file of the AO and direct him to admit assessee s alternate claim of deduction u/s 54F and allow such claim if assessee has fulfilled all conditions specified t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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