ACIT Vs. Shri Dilip Ranjrekar (ITAT Banaglore)
It is apparent from the facts of the case as mentioned (along with copies of corroborative documentary evidence) and discussed above from para 7.1 to 4.4.3 of this order (Supra) that the non completion of the construction the flat by the builder within the stipulated period is beyond the control of the assessee. In our considered opinion, in view of the decision of the Hon’ble Jurisdictional High Court in the case of Smt. B.S. Shantakumari (Supra) and Sambandam Udaykumar (Supra) the assessee cannot be denied exemption u/s 54 of the Act to the extent of investment in the new property, even though the construction of the new asset is not completed within the eligible period of 3 years for the date of sale/transfer of the original asset. With respect to the amount invested in construction of the new property before the date of transfer of the original asset, it is well settled law that the amount invested within one year before the date of transfer of the original asset is to be allowed exemption u/s 54 of the Act. From the details of investments for purchase of the new asset as submitted by the assessee, it is stated that the assessee has only invested an amount of Rs. 2,26,82,097/- towards construction of the property. The AO is therefore directed to restrict the exemption allowable to the assessee to the actual amount spent on construction after due verification. We hold and direct accordingly. Consequently, Revenue’s ground Nos. 5 and 6 and the assessee’s C.O. ground No. 1 are disposed off as indicated above.
FULL TEXT OF THE ITAT JUDGMENT
This appeal by Revenue is directed against the order of the CIT(A)-1, Bangalore dated 28/1/2016 for asst. year 2012-13. The assessee has also filed cross objections in this regard.
2. Briefly stated, the facts of the case are as under:-
3. The assessee, a consultant, filed the return of income for asst. year 2012-13 on 29/9/2012 declaring income of Rs.1,18,03,300/-. The case was taken up for scrutiny and the assessment completed u/s 143(3) of the Income-tax Act, 1961 (in short ‘the Act’) vide order dated 19/2/2015, wherein the assessee’s income was determined at Rs.5,16,93,547/- in view of the following additions/disallowances:-
Comments are closed.