ITA No. 183/Hyd/2012, (Assessment Year: 2008-09). Case: Smt. Nimmagadda Sridevi Vs The DCIT. ITAT (Income Tax Appellate Tribunal)
| Case Number | ITA No. 183/Hyd/2012, (Assessment Year: 2008-09) |
| Counsel | For Appellant: Sri K.A. Sai Prasad and For Respondents: Smt. Vidisha Kalra |
| Judges | Chandra Poojari, Member (A) and Asha Vijayaraghavan, Member (J) |
| Issue | Income Tax Act, 1961 - Sections 133A, 139, 139(1), 54, 54F |
| Citation | 2013 (58) SOT 54 (Hyd) |
| Judgement Date | February 22, 2013 |
| Court | ITAT (Income Tax Appellate Tribunal) |
Order:
Chandra Poojari, Member (A), (ITAT Hyderabad 'B' Bench)
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This appeal by the assessee is directed against the order of the CIT(A)-IV, Hyderabad dated 25.11.2011 for assessment year 2008-09. The assessee raised the ground with regard to non-granting of deduction u/s. 54F of the Income-tax Act, 1961.
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Brief facts of the case are that the assessee is a director in M/s. Veen Promoters Pvt. Ltd. There was a survey u/s. 133A of the Act on 14.7.2009 in the case of M/s. Veen Promoters Pvt. Ltd. The assessee filed return of income for the A.Y. 2008-09 on 31.7.2009 declaring total income at Rs. 24,99,289 after claiming deduction u/s. 54F at Rs. 5,30,04,081 has invested in H. No. C-10, AFCHS, Sainikpuri, Secunderabad according to which the investment was made during the period from August, 2007 to July, 2008. It is also on record that the assessee sold property bearing No. 986 Road No. 50, Jubilee Hills in the financial year 2007-08 vide sale document No. 2739/2007 and 2741/2007 dated 26.7.2007 for a gross consideration of Rs. 4,32,00,000 as against Sub-Registrar value of Rs. 5,04,92,000. According to the Assessing Officer, as the assessee sold the property on 26.7.2007 and the new investment made by the assessee is before 31.3.2007. In other words, the construction of house was substantially completed by 31.3.2007 i.e., before the sale of capital asset which led to capital gain. As such the condition laid down u/s. 54F of the Act was not fulfilled. Being so, the assessee is not entitled for deduction u/s. 54F and the same was denied. The assessee went in appeal before the CIT(A).
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It was observed by the CIT(A) that the assessee started house construction in plot No. C-10, AFCHS, Sainikpuri, Secunderabad in the financial year 2005-06 vide construction agreement with Suguni Constructions Pvt. Ltd. on 21.12.2005. As per the agreement, the construction was to be completed and the house has to be handed over to the assessee under habitable condition on or before 20.3.2007. It was also noticed by the CIT(A) that as per Balance Sheet as on 31.3.2007 the value of construction was at Rs. 4,52,40,382. Accordingly, the CIT(A) confirmed the order of the Assessing Officer denying deduction u/s. 54F of the Act. Against this, the assessee is in appeal before us.
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The learned AR submitted that the entire construction of the house building was not at all completed by March, 2007. The construction was in progress from the date of the construction agreement with Suguni Construction Pvt. Ltd. from 21.12.2005. All the payment to M/s. Suguni Construction Pvt. Ltd. was made by cheque. The house was finally completed in October, 2009 and the assessee occupied the house in November, 2009. The assessee is not having any other residential house. The municipal tax assessment was completed by GHMC in November, 2009. He drew our attention to the copies of Balance Sheet for the A.Ys. 2007-08 to 2009-10. He submitted that the construction was shown in the Balance Sheet as under construction. He submitted that as seen from the Balance Sheet up to 31.3.2007, investment in house building was at Rs. 4.80 crores. Thereafter, year by year the assessee made further investment. Thus, up to October, 2009 the total investment on the property at C-10, AFCHS, Sainikpuri, Secunderabad works out at Rs. 13,63,22,640.
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According to him all details were furnished to the Assessing Officer. In spite of this, the lower authorities rejected the claim of the assessee holding that the investment in house was...
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