Case Law Details
Kapil Kumar Agarwal Vs DCIT (ITAT Delhi)
ITAT held that assessee has purchased a house property i.e. a new asset and is entitled to exemption u/s 54F of the act despite the fact that construction activities of the purchase of the new house has started before the date of sale of the original asset which resulted into capital gain chargeable to tax in the hands of the assessee.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. This appeal is filed by the assessee, individual against the order of the Commissioner of Income Tax (Appeals) – 1, Gurgaon dated 20/2/2015 for assessment year 2011-12 raising solitary ground of appeal that on the facts and circumstances of the case and in the law, the CIT –( A) has grossly erred in confirming disallowance on account of deduction as claimed by the assessee under section 54F of INR 7985761/–.
2. The brief facts of the case shows that assessee is an individual who filed his return of income on 29.07.2011 declaring income of INR 1,43,82,590/–. In the return of income the assessee has shown capital gain on sale of shares and also claimed deduction u/s 54 F of the act. The assessee sold shares of the company on 13/07/2010 for a consideration of INR 8,000,000/- and claimed the indexed cost of purchase of these shares at INR 14239/– and therefore earned long-term capital gain of INR 7985761/–. Assessee has booked a flat/Apartment No. 3C in Belgravia, Tower No. 12 in Central Park-II, Sector 48, Gurgaon on 18/8/2016. The assessee over a period of time in various installments paid Rs. 14245000/- for this flat. Therefore, the assessee claim the benefit under section 54F of the Act.
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