INCOME TAX ACT, 1961

Section 54

Capital gains - Deduction under section 54F - Conditions precedent - Property sold being residential house

Assessee claimed deduction under section 54 which was denied by the AO on the reason that assessee had not filed any supporting evidence to show the sale consideration was reinvested in new residential property. CIT(A) also denied deduction on the ground that the property sold was not a residential house. Held: The assessee pleaded for an opportunity to produce the relevant evidence in support of the cost of construction of new residential house. Further, assessee submitted that the Schedule of property in original sale deed itself shows that assessee has purchased residential house and the same was sold vide Sale Deed. Being so, CIT(A) was not justified in holding that the property sold was not a residential house. Thus, considering the facts and situations assessee's request for opportunity to produce all the relevant documents has to be accepted. Accordingly, matter was remanded to the file of the AO for consideration afresh and assessee was directed to produce all the evidence in support of his claim for deduction under section 54.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2013-14

SUBSCRIBE FOR FULL CONTENT