{"id":27946,"date":"2022-07-02T13:48:33","date_gmt":"2022-07-02T08:18:33","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&p=27946"},"modified":"2022-07-03T12:33:08","modified_gmt":"2022-07-03T07:03:08","slug":"sec-54f-2","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/sec-54f-2\/","title":{"rendered":"Sec.54F"},"content":{"rendered":"

Assessee is an individual and partner in partnership firm engaged in the business of advertising.\u00a0<\/em>In the A.Y. 2008-09. Assessee has capital long term gain other than land and building amounting to Rs. 3.25 cr.<\/em><\/p>\n

Assessee has invested the entire amount for purchase of bungalow along with the land . The area of constructed bungalow is about 20000 sq.ft and area of land on which bungalow constructed\u00a0 \u00a0is 60000 sq.ft<\/p>\n

Assessee has executed registered\u00a0 \u00a0the Development Agreement and power of attorney\u00a0 by paying full stamp duty and also taken the possession of the said property.\u00a0 <\/em><\/p>\n

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.<\/em><\/p>\n

The issue is which assessee has invested the said amount for purchase of house U\/Sec.54F he has paid the entire consideration for purchase of bungalow and land appurtenant there to. However instead of executing the Purchase deed he has executed the Development Agreement.<\/p>\n

AO\u00a0 as well as CIT A has denied the claim only on the ground that since assessee has executed the development agreement, he not entitled for exemption U\/SEc.54F. Even though department has accepted the LTCG on sale of same property after period of 3 years.
\nAssessee is before the ITAT on the following grounds<\/p>\n

    \n
  1. Sec. 54 F speaks about purchase of residential house\u00a0 and investment of the amount\u00a0 with in stipulated time<\/li>\n
  2. The property which is purchase is constructed bungalow along with the land appurtenant there to.<\/li>\n
  3. Possession of the property is with the assessee.<\/li>\n
  4. all other conditions of\u00a0 Sec.54F have been duly compiled<\/li>\n
  5. Only\u00a0 because the assessee has development agreement insteade of sale deed does not disentitled the assessee from claim U\/Sec.54F<\/li>\n
  6. assessee has not carried out any development on the said property<\/li>\n
  7. assessee has sold the property as it is after 42 months and offer the LTCG in the relevant year and same has been accepted U\/SEc.143(1)(a)<\/li>\n
  8. can assessee take any other argument\u00a0 or is there any judicial decision to support the case of the assessee. pl guide<\/li>\n<\/ol>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[33],"qa_category":[23],"qa_tag":[322,136],"class_list":["post-27946","qa","type-qa","status-publish","hentry","qa_expert-advocate-shashi-ashok-bekal","qa_category-income-tax","qa_tag-long-term-capital-gains","qa_tag-reassessment"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/27946","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=27946"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=27946"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=27946"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=27946"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=27946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}