ITO, WARD-57(1), KOLKATA,KOLKATA vs. SRI BARUN KUMAR BASU, KOLKATA

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ITA 200/KOL/2017Status: DisposedITAT Kolkata06 June 2018AY 2009-20103 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the amendment to Section 54F, which disentitles deduction for two houses converted into a single unit, was effective from April 1, 2015. Since the assessment year was 2009-10, this amendment was not applicable.

What were the facts?

The assessee sold land and received two flats and cash in return. The Assessing Officer added the value of the flats and cash as long-term capital gains. The CIT(A) allowed deduction under Section 54F, treating the flats as a residential house.

What were the issues?

Whether the assessee is entitled to deduction under Section 54F for the two flats received in lieu of the capital asset, considering the applicability of amendments to the section.

Which sections of the Income-tax Act were involved?

Section 54F

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH “B” KOLKATA

Before: Shri S.S.Godara & Dr. A.L. Saini

Income Tax Officer, V/s. Sri Barun Kukmar Basu Ward-57(1), 169, A.J. C. 240A, Rash Behari Bose Road, Kolkata-14 Avenue, Kolkata-19 [PAN No.ADTPB 8626 R] .. अपीलाथ" /Appellant ""यथ"/Respondent Shri S. Dasgupta, Addl. CIT-DR अपीलाथ" क" ओर से/By Appellant Shri Soumitra Choudhury, Advocate ""यथ" क" ओर से/By Respondent 31-05-2018 सुनवाई क" तार"ख/Date of Hearing 06-06-2018 घोषणा क" तार"ख/Date of Pronouncement आदेश /O R D E R PER S.S.Godara, Judicial Member:- This Revenue’s appeal for assessment year 2009-10 challenges correctness of Commissioner of Income Tax (Appeals)-17, Kolkata’s order dated 23.08.2016, passed in case No. 157/CIT(A)-17/Kol/15-16 deleting long term capital gains addition of ₹52,56,148/- made in the course of regular assessment framed on 20.03.2015, in proceedings u/s 143(3)/263 of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.

2.

The Revenue’s solitary substantive grievance pleaded in the instant appeal seeks to revive the above stated long term capital gains addition as deleted in the CIT(A)’s order holding the assessee entitled for Section 54F deduction. There is no dispute about the assessee having co-owned the land (relevant capital asset) coming from his father dated 04.09.1957 by way of gift A.Y. 2009-10 ITO Wd-57(1) Kol. Vs. Sh. Barun Kr. Basu Page 2 deed in favour of all four brothers. These joined owners entered into a development agreement dated 27.03.2004. The builder / developer in turn allotted the assessee two flats bearing Nos.302 and 402 measuring 850-950 sq. ft. each with corresponding car parking space, 1/4th of 50% exclusive roof alongwith cash sum of ₹4.08 lakh. The Assessing Officer added value of said two flats alongwith the latter cash money coming to ₹69,43,668/- as reduced to the extent of cost of acquisition thereby culminating in the long term capital gains addition of ₹52,56,148/-.

3.

The assessee preferred appeal. The CIT(A) holds the assessee entitled for Section 54F deduction by treating above the allotted two flats as “a residential house”. This leaves the Revenue aggrieved.

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