Case Law Details
Kondamma Vs ITO (ITAT Bangalore)
Once it is demonstrated that the consideration received on transfer has been invested either in purchasing a residential house or in construction of a residential house even though the transactions are not complete in all respects and as required under the law, that would not disentitle the assessee from the benefit under Section 54F.
In the present case, this is not in dispute that the assessee has made investment of Rs. 1 Crore for purchase of residential house and only the registered deed was executed after more than 4 years and the possession was also taken after more than 4 years but as per the judgment of Hon’ble Karnataka High Court, the assessee will not disentitled from claiming deduction u/s. 54F of the IT Act. Respectfully following this judgment of Hon’ble Karnataka High Court, we hold that assessee should be allowed deduction u/s. 54F to the extent of Rs. 70,84,063/- as claimed by the assessee because investment in purchase of a new residential house made by the assessee is of Rs. 1 Crore and it was made by the assessee on 30.06.2012 whereas the transfer of the original asset took placed on 19.09.2011. There is no dispute on these factual aspects because the same are noted by the AO also in para 14 of the assessment order and there is no observation of the AO that these facts are not correct. Hence we hold that deduction claimed by the assessee u/s. 54F is allowable and we delete the disallowance.
FULL TEXT OF THE ITAT JUDGMENT
This appeal is filed by the assessee and the same is directed against the order of ld. CIT(A)-6, Bangalore dated 30.11.2018 for Assessment Year 2012-13.
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