Vasant Nagorao Barabde Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that in the present case there is a surrender of tenancy rights against which a new flat has been allotted. Thus, deduction u/s. 54F admissible against the capital gain so computed on surrender of tenancy right.
Facts- Case of the assessee was selected for limited scrutiny for the reason of purchase value of property less than the value as per stamp authority. AO noted that assessee had purchase a property. According to assessee the consideration paid for the purchase of property is NIL and the stamp duty value is Rs.2,88,85,600/-. AO issued show cause notice on the assessee to explain the said transaction, proposing to make the addition of Rs.2,88,85,600/- being the stamp duty value for which no consideration was paid, by applying section 56(2)(x)(b)(B). Since, nothing came up from the assessee, he completed the assessment by making the addition of aforesaid amount u/s.56(2)(x)(b)(B).
CIT(A) observed that assessee is not able to substantiate his claim that his name in the agreement for the flat has been incorporated only for security purposes. According to him, assessee is trying to create story to avoid tax liability and has not proven that ownership of the new flat is covered for exemption u/s. 54F of the Act. He further noted that, such a claim has not been made either by the assessee or by the daughter of the assessee in their returns. He thus, sustained the addition made by AO and dismissed the appeal of the assessee. Aggrieved, assessee is in appeal before the Tribunal.
