Case Law Details
Shri. Parswanath Padmarajaiah Jain Vs ACIT (ITAT Bangalore)
Conclusion: Assessee was not entitled to the benefit of section 54F in respect of the investment made by assessee in purchasing the capital asset (land) as the said purchase of land was not within a period of one year prior to the sale of capital asset or falling in any of the categories in which assessee was entitled to claim exemption u/s.54F.
Held: AO denied assessee’s claim of deduction under section 54F on the reason that the new land was acquired by assessee before one year of sale of the capital asset i.e. 01.04.2012. It was held the new capital asset should be purchased within one year before the sale of the long term capital asset or construction or acquisition of the residential house should have taken place within a period of three years or two years after the transfer of the capital asset. The capital asset was transferred on 01.04.2012 and the land was purchased on 17.04.2010 ie., one year prior to the date of transfer and hence for the purposes of availing the benefit u/s.54F, it was necessary that the house should have been constructed within a period of three years from the date of transfer of the capital asset. Purchase of the land was prior to one year hence the case of assessee did not fall under any of the three exemptions available to the assessee u/s.54F.
FULL TEXT OF THE ITAT JUDGMENT
The present appeal is filed by the assessee against the order of the CIT(A)-4, Bengaluru, dt.27.11.2017, for the assessment year 2013-14, on the following effective grounds of appeal :
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HI Sir.. I have a query that if the consideration received on sale of LTCA (being a land) invested in purchase of land is eligible for deduction under section 54F? Does “purchase of land” consider as “Investment in House Property” for the purpose of Section 54F? Please help me with answer.