Case Law Details
Shri Dharamchand Bafna Vs ITO (ITAT Bangalore)
The issue under consideration is whether deduction u/s 54 can be denied if assessee initially purchased land with a view to put up construction but later changed his mind and instead, purchased a residential house?
In the instant case, the deduction u/s.54 of the Act was denied to the Assessee, because the Assessee purchased a land with a view to put up construction on the same but did not do so instead purchased a residential house property.
ITAT states that, the provisions of Sec.54(1) give two options, viz., (i) purchase of a residential house or (ii) putting up of construction in the form of a residential house. There is no prohibition in law for the Assessee to opt for either of the mode for claiming deduction. The fact that initially Assessee purchased a site with a view to put up construction over the same but later changed his mind and instead purchased a residential house, cannot debar the Assessee from claiming the benefit of deduction u/s.54 of the Act, so long as the other conditions of Sec.54 of the Act are satisfied. Hence, Assessee is eligible for caliming deduction u/s 54. Accordingly, the appeal filed by the assessee allowed.
FULL TEXT OF THE ITAT JUDGEMENT
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
