Case Law Details
Anu Gera Vs ITO (ITAT Delhi)
ITAT Delhi held that benefit of exemption under section 54 of the Income Tax Act available even if capital gain is invested in purchasing more than one residential houses within stipulated time limit.
Facts- The return of the assessee was processed u/s 143(1) of the Income Tax Act, 1961. The assessment proceedings have been initiated against the assessee and the claim of exemption u/s 54 of the Act has been denied by the AO.
AO denied the exemption mainly observing that the assessee is entitled for exemption u/s 54 in respect of a residential house property purchased against long term capital gain on sale of a long term capital asset being a residential property. In this case, the assessee has purchased three properties, the exemption u/s 54 of 1.T. Act is allowed in respect of a residential property in view of provisions of section 54 and not against all the tree properties.
Conclusion-In the case of Tilokchand & Sons vs. ITO, the Hon’ble Madras High Court has held that where the assessee HUF sold its residential house and invested capital gain in purchasing more than one residential houses within stipulated time limit assessee would be entitled to benefit of exemption u/s 54 of the I.T. Act.
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Author Bio
To,
The assessing officer, ( AO )
Income taz office Tirupati, andhrapradesh @
@@@
While filing my return inadvertently Nature of Employment was shown as ‘Other’ instead of Central Government. Consequently, out of the leave encashment I received of Rs.10,48,980 an amount of Rs.3,00,000 only was allowed while processing my return under section 154. Actually, I am eligible for deduction of the entire Leave encasement of Rs.10,48,980 shown in Income Tax Return which includes Leave Encasement from Central Government of Rs.9,68,558 which is fully exempted as Central Government Employee U/s 10 (10AA) and the remaining amount of Rs.80,422 Leave Encasement from BSNL is exempted up to 3,00,000 U/s 10 as it is received under CPSE service. So full amount of Rs.10,48,980 Leave Encasement exempted U/s 10 (10AA) of Income Tax Act 1961.
Leave encashment DOT period full exemption @ Leave encashment during BSNL maximum 3 Lacs exemption
Total leave encashment amount full exemption from income Tax exemption
kindly rake early action to cancel the demand given under section 154 by the income tax department @
Padaga Chalapathi Rao
Aftpp 2254h
Kakinada