Assessee is an individual and partner in partnership firm engaged in the business of advertising.\u00a0 In the A.Y. 2008-09. Assessee received a amount of Rs. 1 cr against his right in the property,\u00a0 which is liable for longterm capital gain. Assessee invested the amount of Rs. 1.25 cr for purchase of residential bungalow alongwith the land appertatnent their to by executing the Development Agreement and power of attorney\u00a0 by paying full stamp duty and also taken the possession of the said property.\u00a0 The assessee has not carried out any Development on said property and after holding for period of 42 months sold the said property as it is and offered the LTCL in A.Y. 2012-13, which is accepted U\/sec. 143(1)(a) of the Act.<\/p>\n
Assessing Officer rejected the claim of the appellant made U\/Sec.54F on following grounds<\/p>\n
1. Assessee has entered in to Development Agreement and the rights were granted to assessee for Development and sale of flats on the said property. The assessee has not purchase the property for getting deduction u\/Sec.54F.<\/p>\n
2. When the assessee sold the said property in the A.Y. 2012-13, he has to obtain the consent of original owner. Which means assessee was never the owner of the property and property\u00a0 was not transfered to assessee.<\/p>\n
3. Development Agreement was executed just to avail unreasonable deduction u\/Sec. 54F of the Act.<\/p>\n
4. Purchase of property is necessary condition for claiming deduction u\/Sec. 54F and acquiring property through Development Agreement does not tantamount to purchase of property.<\/p>\n
5. By executing\u00a0 Development Agreement assessee do not became the owner of property.<\/p>\n
6. Subsequent acceptance of Long term capital loss on sale of said property in A.Y.2012-13 does not mean assessee has complied with conditions of sec. 54F in A.Y. 2008-09.<\/p>\n
Is the action of AO is justified in Law.<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[33],"qa_category":[23],"qa_tag":[613,361],"class_list":["post-27161","qa","type-qa","status-publish","hentry","qa_expert-advocate-shashi-ashok-bekal","qa_category-income-tax","qa_tag-investment-in-residential-bungalow","qa_tag-section-54f-deduction"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/27161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=27161"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=27161"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=27161"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=27161"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=27161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}