9911796707
TMI Blog2025 (4) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... ection of claim for deduction u/s. 54F of the Income Tax Act, 1961 („the Act‟); b. Addition made u/s. 68 of the Act in respect of sale of shares; c. Addition made u/s. 68 of the Act in respect of unsecured loans; 2. The assessee is engaged in the business of running pre-school for toddler kids.The assessee filed her return of income for the year under consideration declaring a total income of Rs. 6.14 crores. The assessee had sold shares of a private limited company and earned long term capital gain therein. The assessee invested a part of sale consideration in purchase of a residential flat and accordingly claimed deduction u/s. 54F of the Act during the year under consideration. The AO took up the return of income filed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO noticed that the assessee has held more than one residential house as stated in her Balance Sheet and accordingly took the view that the assessee is not eligible for claiming deduction u/s. 54F of the Act. 3.2. The Ld.CIT(A) noticed that various properties noted down by the AO are either commercial property or has been transferred earlier or does not belong to the assessee. He noticed that the assessee was having only one residential house as on the date of transfer of shares. Accordingly, he held that the assessee is eligible for deduction u/s. 54F of the Act. The revenue is aggrieved. 3.3. We heard the parties and perused the record. We notice that the Ld CIT(A) has clearly analysed the factual aspects relating to the various prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r consideration. Therefore, the erroneous disclosure made In AY 2019-20 and AY 2020-21 cannot be adopted as basis to disregard the legitimate deduction available to the appellant. In view of the registered gift deed and other documentary evidences it is found that the appellant was not owning property no 1 i.e. Flat No. 701, Indraprastha, Katar Road Borivali, Mumbai-400066, on the date of sale of shares. Property 2 : Flat No. 1301, Trimurti, Keluskar Road, Dadar West, Mumbai-400028: 6.8 The underlined property was sold by the appellant on 31.3.2021 to her son Mr. Hetansh Gala. The appellant has also submitted that she owned only this property on the date of transfer of original asset(shares) I.e. on 07.11.2020. Property 3: Flat no. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mercial property and not a residential property as contemplated by the provisions of Section 54F. In this regard, the appellant submitted copy of agreement before learned AO and the extract of the same has been re-produced by the learned AC) in the assessment order at pars 4.6 (page no. 23 of the assessment order). 6.15 The learned AO has merely stated that the details provided by the appellant as not matching with the documents submitted whereas in the extract reproduced, it is very clearly mentioned that the same is to a SHOP No 41 and not residential premises. Thus, the contention of AO is once again not found to be acceptable. 6.16 Having regard to documentation submitted by appellant and explanation provided, it is found that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us, the revenue could not contradict the findings so given by the Ld. CIT(A). Accordingly, we affirm the order passed by Ld. CIT(A) on this issue. 4. The next issue relates to the addition of sale consideration of shares received as gift from her son. The assessee had received 1 lakh shares of M/s Creative Stylo Packs Private Ltd., as gift from her son on 27-10-2020. The said shares were sold by the assessee for a considerationof Rs. 6.90 crores along with shares already held by the assessee. The AO doubted the genuineness of receipt of gift and accordingly assessed the sale value of One lakh shares amounting Rs. 6.90 crores as un-explained cash credit u/s. 68 of the Act. 4.1. Before the Ld.CIT(A), the assessee submitted that the shares w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e last issue relates to Rs. 20,82,520/- relating to un-secured loans added u/s. 68 of the Act as unexplained cash credit. The AO noticed that the assessee has received funds from certain sources and treated the same as un-explained cash credit u/s. 68 of the Act. The Ld.CIT(A) noticed that the assessee has explained the nature of cash credits found in the bank account and accordingly deleted the same. 5.1. We heard the parties and perused the record. We notice that major amount has been received from a related parties out of advance given by the assessee in the earlier years. Further, the said related party has also confirmed the payment, i.e., out of the above said amount of Rs.20,82,520/-, a sum of Rs.19,49,320/- was received by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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