Chandra Bhavani Sankar Vs ITO (ITAT Chennai)
ITAT Chennai Held that the construction of a new residential house to its existing residence with separate stair-case, kitchen, new electrical connection, water connection, etc. qualifies for deduction u/s.54F of the Act. Accordingly, deduction u/s. 54F granted.
Facts- The return of the assessee was selected for scrutiny under CASS. AO completed the assessment on 30.03.2015 by making additions to LTCG re-computed at Rs.66,53,379/-; Savings bank interest Rs.20,218/- and Unexplained cash credit u/s.68 of the Act Rs.59,90,000/-.
Aggrieved, the assessee preferred an appeal before CIT(A) agitating only two issues i.e. (i) disallowance of claim u/s.54F of the Act & (ii) addition u/s.68 of the Act.
Conclusion- Held that the construction of a new residential house to its existing residence qualifies for deduction u/s.54F of the Act. The assessee had discharged the burden to prove construction of a residential house/dwelling unit (first floor with separate stair-case, kitchen, new electrical connection, water connection, etc.) and it is not disputed that construction of the new dwelling/residential unit was within the time stipulated u/s.54F of the Act. Therefore, assessee is eligible for claiming deduction u/s.54F of the Act and therefore, we set aside the impugned order of the Ld.CIT(A) and direct the AO to grant deduction claimed u/s.54F of the Act.
