DCIT Vs Kruti Lalitkumar Jain (ITAT Pune)
ITAT Pune held that deduction under section 54F of the Income Tax Act admissible even if assessee is shareholder in developing company and sale deed has been executed after a period of two years. Accordingly, appeal of revenue dismissed.
Facts- During the course of assessment proceedings AO noted that the assessee has shown sale consideration of Rs.10 crores on which long term capital gain has been computed at Rs.6,55,84,209/- after deducting the indexed cost of acquisition of Rs.3,07,79,191/- and sales expenses of Rs.36,36,600/-. From the details furnished by the assessee, the Assessing Officer noted that the assessee has sold developmental rights to M/s. Kumar Matunga Projects LLP vide development agreement dated 29.12.2014 for Rs.7.5 crores. The assessee has also sold the lease rights to Shri Paresh Dedhia and Shri Jayesh Dedhia vide agreement dated 03.09.2014 for Rs.2.5 crore. Thus, the assessee has received Rs.10 crores from the sale of development rights and lease rights. On this sale, long term capital gain is worked out at Rs.6,55,84,209/- and the same amount is claimed being invested for purchase of house property. He, therefore, asked the assessee to substantiate the claim of deduction u/s 54F of the Act by submitting a copy of purchase deed which was shown as investment in house property.
