Case Law Details
Bollineni Krishna Kumari Vs ITO (ITAT Hyderabad)
ITAT Hyderabad held that sale of vacant plot is not eligible for deduction under section 54 of the Income Tax Act.
Facts- the assessee is an individual, filed her return of income on 30.07.2013 for the AY 2013-14 admitting total income of Rs.4,88,937/- consisting of income from house property of Rs.1,02,945/-, long term capital gain of Rs.3,60,837/- and income from other sources of Rs.25,155/- and agricultural income of Rs.90,000/-. The AO finalized the assessment proceedings and has calculated the long term capital gains at Rs.63,55,216 by disallowing the claim of the assessee u/s. 54 of the I.T. Act.
Conclusion- Held that it is clear the assessee sold a vacant plot only and not residential house and hence the assessee is not eligible for deduction u/s 54 of the I. T. Act.
The perusal of the order clearly shows that the assessee had sold and purchased the plots only and has not acquired any residential house within the meaning of law. Further, as mentioned by the ld.CIT(A), the assessee is having more than two houses, therefore, the assessee is not entitled to any claim u/s. 54F of the I.T.Act. In the light of the above, the assessee has no case of merit, which is duly mentioned by the ld.CIT(A) in the order passed by him. Accordingly, this appeal is dismissed.
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