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The Tax Publishers2012 TaxPub(DT) 0298 (Del-Trib) : (2012) 043 (II) ITCL 0099 INCOME TAX ACT, 1961 --Capital gains--Deduction under section 54F Assessee depositing money for allotment of flat--The assessee had sold a plot for a consideration of Rs. 2,10,000. He had shown capital gain of Rs. 1,69,334. Deduction of this gain was claimed under section 54F on the ground that the assessee had invested a sum of Rs. 1,80,000 for the purchase of a flat. AO rejected the claim of assessee on the ground that construction of the flat was not completed within the stipulated period. Held: Assessee became the member of the co-operative society. The society had floated a scheme for construction of the flats. The land was allotted to the society and assessee had paid his part of cost of land as well as construction to the society. Ultimately the flat was constructed on that piece of land and it was handed over to the assessee as per his share. The case of the assessee comes within the ambit of Circular No. 471 & 472. AO directed to grant deduction under section 54F to the assessee. Income Tax Act, 1961 Section 54F IN THE ITAT, DELHI 'E' BENCH G.E. VEERABHADRAPPA, V.P. & RAJPAL YADAV, J.M. Manish Sethi v. ITO ITA No. 2039/Del/2010 A.Y. 1997-98 9 September, 2011 Appellant by : Vinay Bahl, Advocate, Respondent by : R.S. Negi, Sr. DR, ORDER The assessee is in appeal before us against the order of Commissioner (Appeals)-XXVIII, New Delhi dated 11-2-2010 passed for assessment year 1997-98. 2. The assessee has taken nine grounds of appeal, which are descriptive and argumentative in nature. In brief his grievance revolves around a single issue whether he is entitled for deduction of Rs.1,69,334 under section 54F of the Income-tax Act on account of investment of capital gain in a residential property? 2.1 The brief facts of the case are that originally assessment was completed under section 144 on 15-3-2000 at an income of Rs. 4,59,860against returned income of Rs. 35,020. The assessment was set aside by the Tribunal in I.T.A. No.2997/D/2001 vide order dated 13-1-2009. The Assessing officer has passed the fresh assessment order on 9-12-2009. The assessee has sold a plot at Mundka for a consideration of Rs. 2,10,000. He has shown capital gain of Rs. 1,69,334 Deduction of this gain was claimed under section 54F on the ground that he has invested a sum of Rs. 1,80,000 for the purchase of a flat. The assessee has placed on record the details of sale and purchase in tabular form which read as under:- SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2012 TaxPub(DT) 0298 (Del-Trib) : (2012) 043 (II) ITCL 0099

INCOME TAX ACT, 1961

--Capital gains--Deduction under section 54F Assessee depositing money for allotment of flat--The assessee had sold a plot for a consideration of Rs. 2,10,000. He had shown capital gain of Rs. 1,69,334. Deduction of this gain was claimed under section 54F on the ground that the assessee had invested a sum of Rs. 1,80,000 for the purchase of a flat. AO rejected the claim of assessee on the ground that construction of the flat was not completed within the stipulated period. Held: Assessee became the member of the co-operative society. The society had floated a scheme for construction of the flats. The land was allotted to the society and assessee had paid his part of cost of land as well as construction to the society. Ultimately the flat was constructed on that piece of land and it was handed over to the assessee as per his share. The case of the assessee comes within the ambit of Circular No. 471 & 472. AO directed to grant deduction under section 54F to the assessee.

Income Tax Act, 1961 Section 54F

IN THE ITAT, DELHI 'E' BENCH

G.E. VEERABHADRAPPA, V.P. & RAJPAL YADAV, J.M.

Manish Sethi v. ITO

ITA No. 2039/Del/2010

A.Y. 1997-98

9 September, 2011

Appellant by : Vinay Bahl, Advocate,

Respondent by : R.S. Negi, Sr. DR,

ORDER

The assessee is in appeal before us against the order of Commissioner (Appeals)-XXVIII, New Delhi dated 11-2-2010 passed for assessment year 1997-98.

2. The assessee has taken nine grounds of appeal, which are descriptive and argumentative in nature. In brief his grievance revolves around a single issue whether he is entitled for deduction of Rs.1,69,334 under section 54F of the Income-tax Act on account of investment of capital gain in a residential property?

2.1 The brief facts of the case are that originally assessment was completed under section 144 on 15-3-2000 at an income of Rs. 4,59,860against returned income of Rs. 35,020. The assessment was set aside by the Tribunal in I.T.A. No.2997/D/2001 vide order dated 13-1-2009. The Assessing officer has passed the fresh assessment order on 9-12-2009. The assessee has sold a plot at Mundka for a consideration of Rs. 2,10,000. He has shown capital gain of Rs. 1,69,334 Deduction of this gain was claimed under section 54F on the ground that he has invested a sum of Rs. 1,80,000 for the purchase of a flat. The assessee has placed on record the details of sale and purchase in tabular form which read as under:-