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TMI Blog2020 (10) TMI 1043X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction u/s. 54 of the Act in the light of additional evidence filed before Tribunal and such other evidence that the Assessee may seek to rely on or required by the AO to substantiate her claim. Correct head of income - Long term capital gain or income from other sources - Admission of additional evidence - HELD THAT:- We find that the assessee in the proceedings before the AO has filed copy of agreement for sale dated 22-7-2013 in which the price agreed between the parties was a sum of ₹ 94 lakhs. In the light of this evidence, the question whether the sum of ₹ 46 lakhs should form part of long term capital gain or income from other sources also needs to be examined by the AO. Accordingly, we set aside the order of CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gible to capital gains tax because the assessee invested the sale proceeds in construction of house and was entitled to the benefit of deduction u/s. 54 of the Act. The claim of assessee was as follows:- Revised Statement of Income filed by the assessee that she has shown LTCGs are as under:- Sale consideration of ₹ 95,99,000/- Less: Selling expenses ₹ 2,00,000/- ₹ 93,99,000/- Less: Acquisition cost 2004-05 ₹ 1,68,585 ₹ 3,29,794 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals). The assessee sought to file report of registered valuer to show the cost of construction of the capital asset. The assessee also sought to file evidence to show that within a period of 3 years from the date of transfer of capital asset, the assessee had put up construction of residential house and therefore the requirement of deposit of the unutilized capital gain in a specified bank account did not arise for consideration. In this regard, the assessee placed reliance on the decision of Hon'ble High Court of Karnataka in the case of Fathima Bai v. ITO [2010] 32 DTR 243 (Kar.) wherein it was held that the time limit of deposit of unutilized capital gain in bank account is not required to be seen, if the capital gain is utilize ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 32,56,650/- Capital Gain ₹ 12,12,556/- 6. The CIT(Appeals) also held that the sum of ₹ 46 lakhs which was the full value of consideration received on transfer should be taxed as income from other sources. This direction had some tax implication because the long term capital gain is taxed @ 20%; whereas the income under the head 'income from other sources' is taxed under the maximum marginal rate. Aggrieved by the order of CIT(A), the assessee has preferred the present appeal before the Tribunal. 7. There are basically three issues that need to be decided viz., - (i) What is the cost of construction of capital asset that was sold by the assessee? (ii) whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 54 of the Act in the light of additional evidence filed before Tribunal and such other evidence that the Assessee may seek to rely on or required by the AO to substantiate her claim. 10. As far as the third issue with regard to whether the sum of ₹ 46 lakhs should be part of long term capital gain or income from other sources, we find that the assessee in the proceedings before the AO has filed copy of agreement for sale dated 22-7-2013 in which the price agreed between the parties was a sum of ₹ 94 lakhs. In the light of this evidence, the question whether the sum of ₹ 46 lakhs should form part of long term capital gain or income from other sources also needs to be examined by the AO. Accordingly, we set aside th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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