9911796707
TMI Blog2024 (2) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... r on contended that the Assessee has purchased Bare-Shell flat on 13/08/2016, which is not supported by any of the documents. On the contrary, the Assessee has entered into Agreement to Sell on 18/02/2014 which itself given with certain absolute rights to the assessee as mentioned above. For the purpose of claiming the benefit u/s 54 of the Act, within a period of one year before or two year after the date of transfer of old house, the tax payer should acquire another residential house or should construct a residential house within a specified period of three years from the date of transfer of old house. Considering the fact that assessee has not fulfilled either of the conditions mentioned in Section 54 of the Act, we find no error or i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. That the Ld. CIT (A) has erred in law and facts of the case while confirming the addition made by the Ld. AO amounting to Rs. 35,58,612/- u/s 54 of the Income Tax Act, 1961 on account of disallowance of deduction claimed without appreciating the submissions of the Appellant. As such, the addition of Rs. 35,58,612/- is bad in law and may please be deleted. 3. That the Ld. CIT (A) has erred in law and facts of the case while confirming the addition of Rs. 35,58,612/- u/s 54 of the Income Tax Act, 1961 on account of disallowance claimed, appellant had offered for tax income from Long Term Capital Gain of Rs.35.58,612/-being income arising from sale of property situated at Flat No.2001, 10 Floor, Nishant Cooperative Housing Socie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 58,612/- was computed as under:- Sale consideration Received Rs. 1,36,00,000/- Less Transfer Expenses NIL Less: indexed Cost of acquisition and improvement F.Y 2005-06 2750000/497*1125 Rs. 62,24,849/- F.Y 2005-06 433466/519*1125 Rs. 9,39,594/- F.Y 2007-08 375000/551*1125 Rs. 7,65,653/- Financial Year 2011-12 1393000/785*1125 Rs. 11,96,338/- Financial Year 2013-14 95948/939*1125 Rs. 1,14,954/- Long Term Capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and sought for the intervention by the Tribunal. 6. Per contra, the Ld. Departmental Representative submitted that the Assessee has not purchased any new property or constructed any residential house after execution of the Sale Deed, since the Assessee has violated the conditions of provision under Section 54 of the Act, the A.O. rightly made disallowance which has been confirmed by the Ld. CIT(A) and the same requires no interference. 7. We have heared the parties perused the material. Admittedly the assessee had sold his Residential property on situated at Flat No. 2001, 10th floor, Nishant Co-operative Society, Plot No. 5 Sector 19B, Dwarka dated 28/02/2017 in the Financial Year 2013-14 itself for total sale consideration of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... new flat was completed as per the assessee at the end of January 2018. The date of sale of the Dwaraka property was on 28-2-2017. The new flat which according to the appellant was acquired on 18-22014 as per the endorsement of Mr Piyush Agarwal and the fact is confirmed by the appellant about the delay in construction. Whatever May be the reason for delay in construction, the material fact to be seen is whether the appellant's activity of construction is covered by the provisions of section 54 of the Act. The appellant had come with an argument at one place that: At 4 of written submissions, he states that The possession of flat (on bare shell basis) was given to the appellant only on 13 August 2016. And In para 5, he states that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per the Agreement dated 18/02/2014, the Assessee has been given full right to use, to hold, enjoy, sell, mortgage the Property to be purchased by the Assessee. On the other hand, the first party i.e. Peeyush Aggarwal will not have any right, title or interest over the said property. It is also obverted that as per the Assessee, the new Flat was purchased by sale endorsement dated 18/02/2014, but later on contended that the Assessee has purchased Bare-Shell flat on 13/08/2016, which is not supported by any of the documents. On the contrary, the Assessee has entered into Agreement to Sell on 18/02/2014 which itself given with certain absolute rights to the assessee as mentioned above. For the purpose of claiming the benefit u/s 54 of the Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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