ASSTT CIT Vs. P S PASRICHA
INCOME TAX APPELLATE TRIBUNAL
Click here to view full judgement.
Sunil Kumar Yadav, J.M. -
(1.) THIS appeal by the revenue is preferred against the order of the Commissioner (Appeals) mainly on two grounds which are as under:
1. On the facts and in the circumstances of the caseand in law, the learned Commissioner (Appeals) erred in holding that the assessee is entitled for relief of Rs. 1,04,78,750 under Section 54(1) of the Income Tax Act.
(2.) On the facts and in the circumstances of the case and in law, the learned Commissioner (Appeals) erred in holding that the assessee is eligible for relief in respect of both the flats.
2. We have heard the rival submissions and carefully perused the orders of the authorities below and documents placed on record.
The facts borne out from the record are that assessee has acquired a residential flat in the building known as 'Dilwara' at Cooperage, Mumbai at cost of Rs. 3,22,464. The said property was sold during the year for a total consideration of Rs. 1,40,00,000. After claiming deductions for the expenses incurred for sale and cost of long term capital gains was worked out by the assessee at Rs. 1,24,02,738. The assessee claimed an exemption under Section 54(1) of the Act to the extent of Rs. 1,04,78,750 and returned the taxable capital gain at Rs. 19,23,988. After the sale of the above property, the assessee purchased a commercial property at Kolhapur for a total consideration of Rs. 125.28 lakhs and gave the said property on rent to M/s. Huges Telecom Ltd. Thereafter, within the period specified under Section 54(1) of the Act, the assessee purchased two adjoining residential flats at Mumbai for a total consideration of Rs. 1,04,78,750 on which deduction was claimed under Section 54(1) of the Act.
(3.) THE assessing officer disallowed the claim of deduction under Section 54 on two grounds namely: (1) that the sale proceeds from original asset were not deployed fully in the new asset, (2) the assessee has not purchased one single property, but, two units.;
Copyright © Regent Computronics Pvt.Ltd.