9911796707
TMI Blog2022 (9) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... /2019 - - - Dated:- 1-9-2022 - Shri S.S. Godara, Judicial Member And Shri G.D. Padmahshali, Accountant Member For the Assessee : Shri Suhas Bora For the Revenue : Shri M.G. Jasnani ORDER PER S.S. GODARA, JM : This Revenue s appeal for assessment year 2008-09 arises against the CIT(A)-2, Pune s order dated 06-03-2019 passed in case No. 650- A/2017-18, in proceedings u/s. 143(3) r.w.s. 254 of the Income Tax Act, 1961; in short the Act . Heard both the parties. Case file perused. 2. Coming to the Revenue s sole substantive grievance seeking to revive the assessee s section 54F deduction disallowance of Rs.3.25 crores made by the Assessing Officer in his section 143(3) r.w.s. 254 order dated 28-11- 2016, we no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;ble ITAT vide its order ITA no.424/PN/2013 directed to treat the income of the assessee of Rs.3 crore as LTCG and further allowed the exemption u/s 54F after due verification. 4. As per the direction of the Hon'ble ITAT, the appellant furnished the necessary evidence in support of his claim of deduction u/s 54F as required in the form of development agreement dated 14.01.2008, copy (enclosed Refer page no.1-51). 5. The Ld AO on perusal of the development agreement noticed that the rights were granted to the assessee for development and sale of flats/units and no property was purchased by the assessee. Therefore, he drawn the conclusion that the investment made by the appellant is not for purchase of house property but had e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .1993 was also issued by the corporation. (Refer page no. 53-122). e. From the above details, it is clearly evident that the claim made by us u/s 54F is in respect of a residential house. 7. It is submitted before your Honor that under Section 54, the word used is property used for residence', but in the body of both the sections, i.e., 54 54F, the phrases used are residential house Hence, the two phrases could be said to be inter-changeable and have the same connotation. The phrase 'residential house' is not defined in the Act. As such, it has to be understood in the normal sense of a house, which could be used for a residence. The term 'residential house' came for discussion before the Orissa High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. CIT [1987] 163 ITR 642 (Karp); f. CIT v. Kamala Ranganathan [1990] 186 ITR 536 (Mad.); g. CIT v. Mrs. P. Rajasulochana [1994] 210 ITR 423 (Mad.); h. CIT v. Sint. D. Rani [1996] 218 ITR 724 (All.); and 7. In view of above facts and various documents, only because the appellant had executed the development of agreement, while purchasing the property where in it is stated that it is purchased for development, action of AO to reject the exemption is unjustified, as it is proved beyond doubt that the property purchased is a bungalow along with the land appurtenant thereto. b. As per municipal record it is residential house property c. Appellant has not carried out any development on the said property d. Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gains in a new residential property. 5.2.1 In support of the claim, the appellant had submitted a registered development agreement of the property bearing Plot No.9, Survey No. 104 108, Hissa No. 1A,1B/1/1C admeasuring 743.40 sq. metres along with old bunglow structure thereon situated at Aundh, Pune vide registered agreement no. 1082/2008 dated 06/02/2008 registered at the office of the Sub-registrar, Haveli, Pune-19. On perusal of the agreement, it is observed that the owner of the property namely, MuzulTldar family through their attorney M/s. Saijyoti Associates entered into a development agreement with the appellant on 14/01;'2008. In para 2 of page no.' of the agreement, it is clearly mentioned that the lump-su ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
