SRI. RANGANATH MANGAL VEDKAR ,BENGALURU vs. INCOME TAX OFFICER, WARD-5(3)(1), BENGALURU

This is an appeal by the assessee against the order dated 8/8/2017 of Commissioner of Income-tax (Appeals) - 5, Bengaluru relating to asst. year 2006-07.

The assessee is an individual. He owned land in Bangalore. He entered into a registered Joint Development Agreement (JDA) dated 24/6/2005 for development by construction over the land owned by the Assessee. As per the JDA, the assessee was

As far as deductions u/s 54 of the Act is concerned, the Revenue authorities have not examined the claim of the assessee at all. The fact that there is no claim made in the return of income for such deduction cannot be the basis not to examine a lawful claim made by the assessee which if it is accordance with the provisions of law, should be allowed. Since this issue also needs to be examined by the AO, we deem it fit and proper to set aside the order of the CIT(A) and remand the issues with regard to validity of initiation of proceedings u/s 147 of the Act and the claim of the assessee for deduction u/s 54 of the Act, to the AO for fresh consideration. The AO will afford opportunity of being heard to the assessee before deciding the issues. For statistical purposes the appeal is treated as allowed.

In the result, the appeal of the assessee is treated as allowed for statistical purposes.