Case Law Details
Suhas Vasantrao Joshi Vs DCIT (ITAT Ahmedabad)
If an assessee booked a flat under self-finance scheme of DDA or any other similar situated institutions, then it would be construed that the assessee has fulfilled conditions enumerated in section 54 and would be entitled for the exemption. In the present case also the assessee has booked a flat in a scheme launched by PIPL. He has made payment through account payee cheque and that concern has issued receipt to him. Thus, in the assessment year 2009-10 case of the assessee falls within the ambit of section 54, because the assessee has purchased a house under a self-finance scheme in the same assessment year. However, during the course of assessment proceedings, it emerged out that there was change in the circumstances. Certain development taken place whereby the flat could not be constructed and builder returned the money. This change in the circumstances would disentitle the assessee from claiming exemption under section 54.
FULL TEXT OF THE ITAT JUDGMENT
Assessee is in appeal before the Tribunal against order of the ld.CIT(A)-11 dated 2.5.2016 passed for the assessment year 2009-10.
2. Though assessee has taken five grounds of appeal, but his main grievance revolves around a single issue whereby he has pleaded that the ld.CIT(A) has erred in confirming rejection of assessee’s claim for grant of exemption under section 54 of the Income Tax.
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