Mahadev Dasu Jadhav Vs ITO (ITAT Pune)
ITAT Pune order on LTCG – denial of benefit of deduction u/s 54F – as per AO there was no evidence proving the house is actually constructed within the time prescribed therein
Brief facts:
the assessee is an individual filed return of income declaring total income at Nil. According to Assessing Officer, an information gathered that the assessee has sold a plot comprising 50R at Khadgaon, Latur for a consideration of Rs. 17,26,000/- on 18.01.2007. A notice u/s 148 was issued asking the assessee to file copy of return of income, bank account extracts and working of capital gain. According to Assessing Officer, there was no response from the assessee but an Authorized Representative appeared before the Assessing Officer in response to the notice u/s 143(2) of the Act. According to Assessing Officer, the assessee claimed deduction u/s 54F of the Act. According to Assessing Officer, on perusal of the details submitted by the assessee that the assessee purchased a plot on 09.04.2003 and permission for construction was granted on 29.06.2005. Further, he observed that the assessee is not entitled to claim of deduction u/s 54F of the Act as there was no evidence proving the house is actually constructed within the time prescribed therein. Further, he observed that the assessee is not entitled as the plot was purchased on 09.05.2003 i.e. 3 years and 7 months prior to the date of sale i.e. 18.01.2007. Accordingly, the Assessing Officer denied deduction u/s 54F of the Act and computed capital gain by determining the total income of the assessee at Rs. 11,95,150/- vide its order dated 20.03.2015.
