Shri Chandra Bhavani Sankar Vs ITO (ITAT Chennai)
ITAT Chennai held that construction of new dwelling unit on first floor is eligible for deduction under section 54F of the Income Tax Act as construction was done within stipulated time limit.
Facts-
The RoI was selected for scrutiny under CASS, and the AO completed the assessment by making additions towards 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), wherein, he agitated only two issues i.e. (i) disallowance of claim u/s.54F of the Act & (ii) addition u/s.68 of the Act.
CIT(A) has confirmed the action of AO. Being aggrieved, the present appeal is filed.
Conclusion-
Held that 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.
