Tag Archives: Section 54F

Basement is part of residential house; eligible for Sec. 54/54F : ITAT

By | April 6, 2018

IN THE ITAT MUMBAI BENCHES ‘J’ Assistant Commissioner of Income-tax Circle-16(1) Mumbai v. Shrey Sharma Guleri Prime Channel Software Communications (P.) Ltd. JOGINDER SINGH, JUDICIAL MEMBER AND N.K. PRADHAN, ACCOUNTANT MEMBER IT APPEAL NO. 6147 (MUM.) OF 2016 [ASSESSMENT YEAR 2009-10] MARCH  22, 2018 Saurabh Rai for the Revenue. Dilip V. Lakhani for the Assessee. ORDER   Joginder Singh,… Read More »

Section 54F allowed even if amount not deposited in Capital Gain FDR Scheme but house purchased within time limit

By | October 21, 2017

Held Having come to the conclusion that the assessee had utilised the net consideration in construction of a house within the period of three years from the date of transfer, the question would be whether the absence of deposit of unutilised net consideration in a specific bank account as is required u/s 54F(4) of the… Read More »

Section 54F Exemption to HUF Allowed Even if property in Name of Karta

By | March 21, 2017

Held For the investment made in the individual capacity, even though HUF is an independent assessable unit under Income Tax Act, under the common law, HUF cannot be considered to be a legal entity. The HUF has to be represented through any one of the coparceners. Therefore, when the assessee HUF invested the funds in… Read More »

Section 54F claim not available on basis of Agreement to sale , Sale deed required

By | November 24, 2016

Held There was an agreement for purchase of land which was not carried out and matter was taken to Court, where parties entered into settlement for transfer of plot. Fact remains that no legal document having effect of transfer of immovable property was placed before Appellate Authority. Under the provisions of transfer of Transfer of… Read More »

Flats held as stock in trade are not second residential house, Section 54F allowed

By | November 2, 2016

Held Any stock in trade by profession is excluded from the definition of capital asset and in these circumstances the contention of the Revenue is that stock in trade is also included for applicability of Section 54F of the Act, in our view, cannot be accepted. HIGH COURT OF KARNATAKA Commissioner of Income-tax, Mangalore v.… Read More »

House Transfer within 3 years under family arrangement, sec. 54F relief can’t be denied

By | September 16, 2016

Held The assessee’s claim for exemption u/s 54F of the Act was rejected on the ground that the assessee was having two flats and one of the flat was transferred within a period of three years. This Tribunal is of the considered opinion that even though two flats were allotted, this has to be construed… Read More »

Section 54F relief allowed even in caseof belated return under sec. 139(4)

By | July 19, 2016

IN THE ITAT CHENNAI BENCH ‘A’ G. Ramesh v. Income-tax Officer, Non-Corporate Ward -17(1), Chennai CHANDRA POOJARI, ACCOUNTANT MEMBER AND G. PAVAN KUMAR, JUDICIAL MEMBER IT APPEAL NO. 180/MDS/2016 [ASSESSMENT YEAR 2011-12] JUNE  22, 2016 Related post Section 54F can’t be denied even if house construction Incomplete Cancellation of agreement did not affect Section 54F… Read More »

Taxpayer unable to get possession of flat due to fault of the Builder , No denial of Section 54F relief

By | July 17, 2016

IN THE ITAT MUMBAI BENCH ‘SMC’ Rajeev B. Shah v. Income-tax Officer, Ward-19 (2) (1), Mumbai MAHAVIR SINGH, JUDICIAL MEMBER I.T. APPEAL NO. 262 (MUM.) OF 2015 [ASSESSMENT YEAR 2010-11] JULY  8, 2016 Subhash Shetty and R.N. Vasani for the Appellant. Somanath S. Ukkali for the Respondent. ORDER   Mahavir Singh, Judicial Member – This… Read More »

Tax benefits of House in India

By | May 25, 2016

Tax benefits of House 1.  Tax benefits of House : Capital Gain Exemption in case of purchase of residential on Sale of residential house Section 54 of the Income Tax Act, provide for exemption for long term capital gains . Following are the conditions Exemption to individual or a Hindu undivided family The capital gain arises from… Read More »

Section 54F can’t be denied even if house construction Incomplete

By | May 4, 2016

Held Section 54F of the Act is a beneficial provision of promoting the construction of residential house. Therefore, the said provision has to be construed liberally for achieving the purpose for which it was incorporated in the statute. The intention of the Legislature was to encourage investments in the acquisition of a residential house and… Read More »

Cancellation of agreement did not affect Section 54F benefit

By | April 12, 2016

Held In our opinion, the liberal interpretation of the term purchase as it appear in section 54 has to be given also to the term ‘constructs’ appearing therein, in conjunction to the former. Even the Hon’ble jurisdictional High Court in the case of CIT v.Smt B.S. Shanthakumari [2015] 233 taxmann.com 347/60 taxmann.com 74 (Kar.) held… Read More »

Section 54F Allowed even if construction not completed in 3 years

By | October 27, 2015

Facts of the Case  Assessee sold property situated at Dr.Shivaram Karanth Nagar under a sale deed dated 06.10.2008 and capital gain on sale of said property was invested by the assessee by purchasing a residential site at Nagarbhavi, II Stage on 13.10.2008.Assessee on 02.06.2010  obtained approval of the building plan from the local authority namely… Read More »

No denial of section 54F due to non completion of construction

By | August 6, 2015

No denial of section 54F due to non completion of construction Question : Where assessee had invested net sale consideration on transfer of long-term asset in construction of a residential house property, Whether deduction of section 54F could be denied merely because the construction of house was not complete in all respects within 3 years… Read More »