SHRI ASHOK KUKREJA,BHOPAL vs. THE ACIT 3(1), BHOPAL
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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: HON’BLE RAJPAL YADAV & SHRI MANISH BORAD
PER MANISH BORAD, A.M
The above captioned appeal filed at the instance of the Assessee for Assessment Year 2010-11 is directed against the
Shri Ashok Kukreja ITA No.519/Ind/2019
order of Ld. Commissioner of Income Tax(Appeals) (in short ‘Ld.
CIT],-2 Bhopal dated 26.02.2019 which is arising out of the
order u/s 143(3) of the Income Tax Act 1961(In short the ‘Act’)
dated 07.02.2013 framed by ITO-3(2), Bhopal.
The Assessee has raised following grounds of appeal in
ITANo.519/Ind/2019:
“That on the facts and in the circumstances of the case of the assessee Ld. CIT(A) was not justified in confirming addition of Rs.18,98,561.00 towards relief claimed under section 54F of the Act.”
Brief facts as culled out from the records are that the assessee
is an individual running business of grinding of spices, whole
sale trading of spices, kirana items under the whole
proprietorship concern of M/s. Kukreja Brothers. E-return of
income for A.Y. 2010-11 filed on 20.10.2010 declaring income of
Rs.3,38,160/-. Case selected for scrutiny through CASS followed
by serving of notices u/s 143(2) & 142(1) of the Act. During the
course of assessment proceedings Ld. AO observed that the
assessee had claimed exemption u/s 54F of the Act for
purchasing property at first floor of 208 situated at Major
Shopping Central Scheme No.13, M.P. Nagar Zone-II Bhopal. 2
Shri Ashok Kukreja ITA No.519/Ind/2019
Assessee claimed it to be residential property but Ld. AO
considered it to be of commercial nature which cannot be used
for residential purposes. The exemption u/s 54F was denied and
sum of Rs.18,98,561/- added to the income along with other
minor additions. Income assessed at Rs.28,73,871/-.
Aggrieved assessee preferred an appeal before the ld. CIT(A)
and partly succeeded.
Now the assessee is in appeal before Tribunal challenging the
finding of Ld. CIT(A) confirming the addition of Rs.18,98,561/-
claimed by the assessee u/s 54F of the Act.
Ld. counsel for the assessee reiterated the submissions made
before the Ld. CIT(A) placed at pages 1 to 6 of the paper book are
also referred other documents placed at pages 7 to 43 of the
paper book dated 14.02.2020, claiming that the alleged property
situated at first floor is residential property and claim of 54F of
the Act should have been allowed.
Per contra ld. DR vehemently argued supporting the orders of
both the lower authorities.
Shri Ashok Kukreja ITA No.519/Ind/2019
We have heard rival contentions and perused the records
placed before us. Sole grievance of the assessee is against the
finding of Ld. CIT(A) confirming the addition of Rs.18,98,561/-
claimed by the assessee for deduction u/s 54F of the Act which
was denied by the Ld. AO. We notice that the property in
question is situated at first floor of building No.208 situated at
Major Shopping Central Scheme No.13, M.P. Nagar Zone-II
Bhopal.
As per the permission granted by the Municipal Corporation,
Bhopal, the ground floor is to be utilized for commercial activities
and thus shops are constructed on ground floor and first floor to
be utilized for residential purpose. We also find that the assessee
has purchased a property as a residential property and
registering authority have also registered the said purchase after
charging expenses valuing the said property for stamp duty value
as a residential property. Copy of registration papers and
guidelines for stamp duty valuation are placed on record. It is
noteworthy that Electricity Department had also considered the
use of the said premises as a residential use and has charged the
electricity rates accordingly. Perusal of record also shows that the
Shri Ashok Kukreja ITA No.519/Ind/2019
assessee has submitted the copy of the Municipal receipt and
return during the course of assessment proceedings itself.
Municipal authorities have charged the property tax treating it as
a residential property. Further from perusal of the purchase deed
placed at pages 11 to 19 we find that the complete details of the
property purchased by the assessee is mentioned which is
measuring 864 sq.ft. and consists of residential rooms all located
at first floor. Copies of electricity bills relating to the property in
question are also placed in the paper book which also supports
the contention that the property is used for residential purpose.
We, therefore, in the given facts and circumstances of the case
and various documentary evidences filed before us, are satisfied
with the contention made by the Ld. counsel for the assessee and
Ld. DR being unable to place any contrary material to prove
otherwise, are of the considered view that the assessee has
rightly claimed exemption u/s 54F of the Act for Rs.18,98,561/-
for purchase of residential house property located at first floor of
a complex having shops constructed on ground floor. We,
accordingly set aside the finding of ld. CIT(A) and allow the sole
ground raised by the assessee. 5
Shri Ashok Kukreja ITA No.519/Ind/2019
In the result, Assessee’s appeal in ITANo.519/Ind/2019 is allowed. The order pronounced as per Rule 34 of ITAT Rules, 1963 on 07.09.2021.
Sd/- Sd/-
(RAJPAL YADAV) (MANISH BORAD) VICE PRESIDENT ACCOUNTANT MEMBER
�दनांक /Dated : 07.09.2021 Patel/PS Copy to: The Appellant/Respondent/CIT concerned/CIT(A)
concerned/ DR, ITAT, Indore/Guard file.
By Order,
Asstt.Registrar, I.T.A.T., Indore
