S VASANTHA,CHENNAI vs. ITO, NON CORPORATE WARD -6(4), CHENNAI

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ITA 73/CHNY/2018Status: DisposedITAT Chennai17 November 2020AY 2011-124 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee is eligible for exemption under Section 54F as she shared the sale consideration with her son for the construction of a new house, considering her age and circumstances.

What were the facts?

The assessee inherited vacant land and sold it. She shared the sale consideration with her son who constructed a house. The assessee claimed exemption under Section 54F for this transaction.

What were the issues?

Whether the assessee is eligible for exemption under Section 54F when the sale consideration was used by her son to construct a house.

Which sections of the Income-tax Act were involved?

Section 54F

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: SHRI V. DURGA RAO & SHRI S. JAYARAMAN

Hearing: 17.11.2020Pronounced: 02.12.2020

Smt. S. Vasantha, The Income Tax Officer, No.26/2, Vivekananda Street, Non-Corporate Ward – 6(4), Annai Ajugam Nagar, Vs. Chennai – 600 034. Peravallur, Chennai – 600 082. . [PAN: AQPPV 9156K] (अपीलार्थी/Appellant) (प्रत्यथी/Respondent) अपीलाथी की ओर से/ Appellant by : Mr. S. Sridhar, Advocate प्रत्यथी की ओर से /Respondent by : Mrs. R. Anita, JCIT सुनवाई की तारीख/Date of Hearing : 17.11.2020 घोषणा की तारीख /Date of Pronouncement : 02.12.2020 आदेश / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER:

This appeal filed by the Assessee is directed against the order of the learned Commissioner of Income Tax (Appeals)-5, Chennai in dated 01.06.2017 relevant to the assessment year 2011 - 2012.

2 -: 2. The facts of the case in brief is that the Assessee, Smt. S. Vasantha inherited a vacant land of 1.06 acres comprising of Survey No.70/2 of Periakuppam Village, Tiruvallur, Chengalpet District after the death of her husband, Late Shri. Srinivasan along with other co-owners of Late Shri. Singaravelu who initially purchased the property along with her husband. The same was sold by the Assessee and her two sons along with the legal heirs of Late Shri. Singaravelu by way of sale deed Doc. No.807/2010 dated 24.05.2010. The Assessee has shared the sale consideration received by her along with Mr. Ram Kumar who is the son of the Assessee to construct a house. Mr. Ram Kumar had constructed a house by taking a loan and also with the sale consideration share that was given by his mother and received by him and thus the Assessee has claimed exemption u/s.54F of the Income Tax Act, 1961.

3.

The Assessing Officer has denied on the ground that the Assessee has not constructed a house and was not eligible for the exemption for Section 54F of the Income Tax Act, 1961.

3 -: 4. The learned Commissioner of Income Tax (Appeals) has confirmed the same.

5.

We have heard both the sides, perused the materials available on record and gone through the orders of the authorities below.

6.

The Assessee’s Late husband along with Late Shri. Singaravelu had purchased the vacant land comprising of 1.06 acres. After the demise of the Assessee’s husband and also the co- owner, both the legal heirs has sold the property. So far as the Assessee is concerned, she received the sale consideration along with her two sons and that one of her son proposed to construct a house. The Assessee being an old-aged women has shared the sale consideration to her son for the purpose of constructing a new house and thus claimed exemption u/s.54F of the Income Tax Act, 1961.

7.

It is a fact that the Assessee’s son constructed a house with the sale consideration received by the Assessee and that shared with her son. Under these facts and circumstances, exemption u/s.54F of the Income Tax Act, 1961 being a beneficial provision and also taking into consideration the status of the old-aged women

4 -: who is without her husband who has shared the money received by her to her son for constructing of a new house, in our opinion, the Assessee is eligible for the benefit of exemption u/s.54F of the Income Tax Act, 1961. Accordingly, the order passed by the learned Commissioner of Income Tax (Appeals) stands cancelled and the appeal of the Assessee is allowed.

8.

In the result, the appeal of the Assessee in I.T.A.No.73/Chny/2018 is allowed. Order pronounced on 2nd December, 2020 in Chennai.

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