Case Law Details
Sanjiv Ahuja Vs ITO (International Taxation) (ITAT Delhi)
Deduction u/s 54 is restricted to only one residential house by the Finance Act 2014 is prospective in nature and is effective from assessment year 2015-16 and not retrospective in nature and that deduction u/s 54 of the Act in respect of investment made in one residential house can be claimed by the assessee.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal filed by the assessee is directed against the order dated 17/11/2016 passed by the Ld. CIT (A) 42 New Delhi relating to assessment year 2012-13.
2. Facts of the case, in brief, are that assessee is in individual and during the year has derived the income from long term capital gains and income from other source. He filed his return of income on 1st August,2012 declaring total income of Rs. 30,370/-. During the course of assessment proceedings, the AO noted that assessee had declared capital gain income of Rs. 1,00,00,000/-against which deduction u/s 54 was claimed at Rs. 80,02,175/-. He asked the assessee to submit documentary evidence in support of cost of acquisition and sale consideration of the property sold during the year and evidence in support of claim of investment in immovable property claimed exempt u/s 54 of the Act. From the various details furnished by the assessee the AO noted that while claiming deduction u/s 54 of the I.T. Act assessee has purchased two properties of different places. He, therefore, asked the assessee to explain the same. Assessee submitted that as per provisions of section 54 of the I.T. Act the assessee should purchase / construct a residential house. Assessee also relied on the various decisions :-
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