S.54F : Capital gains- Investment in a residential house-Non-Resident-Transfer of tenancy rights-Invested in residential flat in proposed building-AO was indeed in error in adopting a hyper-pedantic approach and holding that there was a fresh claim for exemption under section 54F of the Act-Entitle for exemption. [S. 45, 54]
The assessee invested the entire sale consideration of the tenancy right in residential house. In the return of income she mentioned the section 54 of the Act. In the course of assessment proceedings she stated that it was inadvertent mistake. The AO rejected the claim. On appeal the CIT(A) allowed the claim. The Revenue filed an appeal against the order of CIT(A). Dismissing the appeal of the Revenue the Tribunal held that the AO was indeed in error in adopting such a hyper-pedantic approach and holding that there was a fresh claim for exemption under section 54F of the Act. The grievance raised by the AO devoid of any legally sustainable merits. Appeal of the Revenue was dismissed. (ITA No. 834/Mum/2022, dt. 30-8-2022, Bench “F”) (AY. 2017 -18).

ITO v. Armine Hamied Khan (Mum.)(Trib.), www.itatonline.org
[Coram : Hon’ble Shri Pramod Kumar, Vice President and Hon’ble Shri Anikesh Banerjee, Judicial Member]