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.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
This is appeal filed by the Assessee, feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals)-5, Hyderabad, dated 29.05.2017 for the AY 2013-14, on the following grounds
1. On the facts and in the circumstances of the case the order of the learned Commissioner (Appeals) is erroneous in law and facts of the case.
2. On the facts and in the circumstances of the case the learned Commissioner ought not to have confirmed the assessment of addition under the head capital gains by re- computation without allowing deduction u/s. 54 of u/s. 54F alternatively.
3. The appellant crave leave to add to, alter modify, delete, amend, substitute all or any of the above grounds.
2. Brief facts of the case are that 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.
3. None appeared on behalf of the assessee during the course of proceedings despite repeated notices sent to the assessee.
4. ID.DR had drawn our attention to the finding of the ld.CIT(A), which are to the following effect:-
4.1 During the F.Y. 2003-04, the assessee had purchased following two properties.
