Avichal Kulshrestha Vs ITO (ITAT Delhi)
ITAT Delhi held that deduction under section 54F of the Income Tax Act allowable since the provisions of section 54F allows for construction of the property within a period of three years. Accordingly, appeal allowed.
Facts- During the assessment proceedings, the AO observed that in the original return of income, assessee declared Long Term Capital Gain (LTCG) to the extent of Rs.62,72,665/-. However, in revised return of income, assessee has declared LTCG of Rs.22,65,071/-. AO observed that assessee has claimed additional deduction u/s 54F of the Act to the extent of Rs.61,41,102/- in place of Rs.21,33,108/-. By relying on the provisions of section 54F, AO observed that the assessee had sold the property on 26.09.2016 and assessee should have acquired the property on or before 25.09.2018 and he rejected the contention of the assessee that the assessee had constructed the residential property. AO proceeded to reject the claim of the assessee u/s 54F of the Act by observing that assessee has acquired the property only on 21.12.2018 whereas the assessee should have acquired the property on or before 25.09.2018.
Further, on verification of assets and liability of the revised income-tax return filed by the assessee on 03.08.2016, he observed that assessee has reported the value of flat No.C1/10801 and the flat under dispute is recorded at Rs.1,00,61,431/-. On perusal of the sale deed of the property and the stamp duty, the total value comes to Rs.92,43,850/-. Since assessee has recorded the value of Rs.1,00,61,431/-, the difference of Rs.8,25,581/- was added as undisclosed investment u/s 69B of the Act.
