Case Law Details
Shri Lakshmi Narayana Prasad Vs ITO (ITAT Bangalore)
In this case, the claim of assessee u/s. 54 was denied on the reason that assessee has not filed any supporting evidence to show the sale consideration was reinvested in new residential property. Before us, the ld. AR pointed out to the copies of bank statements and submitted that the amount is accounted out of sale consideration towards construction of new residential house and deduction u/s. 54 has to be granted. However, the assessee has not produced the relevant bills, vouchers and receipts towards incurring the cost of construction of new residential property. The assessee pleaded for an opportunity to produce the relevant evidence in support of the cost of construction of new residential house.
The argument of the ld. DR is that there is no evidence to show that the original asset sold being a residential house. In reply, the ld. AR submitted that this was not the issue for denying deduction u/s. 54 by the AO. She also submitted that the Schedule of property in original sale deed dated 7.4.2017 itself shows that assessee has purchased the Site No.20 at Cholanayakanahalli Village, Kasaba Hobli, Bangalore North Taluk situated within Ward No.96 Guddadahalli Main Road, BMP, measuring East to West: Northern Side 37 ft, Southern Side : 45 ft., and North to South : Eastern side 78 ft. and on the Western side 94 ft. along with two squares A.C Sheet shed with electric amenity and the same was sold vide Sale Deed dated 29.8.2012. Being so, in our opinion, the CIT(Appeals) is not justified in holding that the property sold was not a residential house. We are of the opinion that the ld. AR’s request for opportunity to produce all the relevant documents has to be accepted. Accordingly, we remit the entire issue to the file of the Assessing Officer for fresh consideration and direct the assessee to produce all the evidence in support of his claim for deduction u/s. 54.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by the assessee is against the order dated 20.10.2017 of the CIT(Appeals), Bengaluru-6, Bengaluru for the assessment year 2013-14 on the following grounds of appeal:-
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