Case Law Details
Anita Jayant Oswal Vs DCIT (ITAT Pune)
The issue in the present appeal relates to the exemption u/s 54 of the Act. It is an admitted fact that the appellant had not offered any capital gains on the sale of flat at Mumbai. During the course of assessment proceedings, the assessee had furnished the details of working of capital gains arising on sale of flat at Mumbai and claimed exemption u/s 54 of the Act. The same was negative by the Assessing Officer on the ground that a claim which was not made in the return of income, cannot be made during the course of assessment proceedings. However, the ld. CIT(A) had entertained the additional claim u/s 54 placing reliance on the decision of the Hon’ble Bombay High Court in the case of CIT v. Prithvi Brokers & Shareholders (P.) Ltd., 349 ITR 336 (Bom.) and proceeded to examine the claim on merits. The ld. CIT(A) had extracted the details of investments made in the new two flats and held that two flats cannot be treated as one flat in view of the fact that they cannot be combined into single unit as they are located in different floors placing reliance on the decision of the Hon’ble Bombay High Court in the case of CIT vs. Devdas Naik, 49 taxmann.com 30 (Bom.). Similarly, the ld. CIT(A) placing reliance on the decision of the Hon’ble Jurisdictional High Court in the case of K.C. Kaushik vs. ITO, 185 ITR 499 (Bom.) held that the assessee is entitled for exemption u/s 54 only in respect of one flat and directed the Assessing Officer to exempt the cost of investment in one flat made before due date of filing the return of income of Rs.92,91,220/-. The contention of the ld. AR that the appellant is entitled to the exemption u/s 54 in respect of investment made into two flats cannot be accepted in view of the decision of the Hon’ble Jurisdictional High Court in the case of K.C. Kaushik vs. ITO, 185 ITR 499 (Bom.). Hence, the order of the ld. CIT(A) is based on the decision of the Hon’ble Jurisdictional High Court referred above supra, does not call for any interference. Accordingly, the grounds of appeal filed by the assessee stand dismissed.
FULL TEXT OF THE ORDER OF ITAT PUNE
This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax (Appeals)- 13, Pune [‘the CIT(A)’] dated 15.02.20 18 for the assessment years 20 14-15.
2. The appellant raised the following grounds of appeal :-
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