ITAT Bangalore allows the appeal filed by Rajyalakshmi Reguraj for Statistical purposes

The Income Tax Appellate Tribunal (ITAT) Bangalore has allowed an appeal filed by Rajyalakshmi Reguraj concerning the 2016-2017 assessment year. The core issue was the restriction of a deduction claimed under Section 54F of the Income Tax Act. The Assessing Officer (AO) and Commissioner (Appeals) had disallowed a portion of the deduction, adding back Rs.11,58,896 to her total income. This decision has now been overturned by the ITAT.

IN THE INCOME TAX APPELLATE TRIBUNAL
BANGALORE BENCHES “SMC-A”, BANGALORE

Before Shri George George K, Judicial Member
ITA No.1717/Bang/2019 : Asst.Year 2016-2017

Rajyalakshmi Reguraj
539, 2nd Main, 2nd State
RMV 3rd Block
Bengaluru – 560 094.
PAN : ACVPB6306M.
(Appellant) 

vs.

The Income Tax Officer
Ward 6(3)(2)
Bangalore.
(Respondent)

Appellant by : Smt.Kavitha Paramesh, CA
Respondent by : Sri.Ganesh R.Ghale, Standing Counsel

Date of Hearing : 04.01.2021
Date of Pronouncement : 05.01.2021

O R D E R

This appeal at the instance of the assessee is directed against CIT(A)’s order dated 23.05.2019. The relevant assessment year is 2016-2017.

2. The solitary issue raised is whether the A.O. and the CIT(A) have erred in restricting deduction u/s 54F of the I.T.Act and adding back to the total income an amount of Rs.11,58,896. 

3. The brief facts of the case are as follow: The assessee is an individual. During the relevant assessment year assessee sold 3000 equity shares in a company called Aditya Auto Products Private Limited for a total consideration of Rs.2,40,00,000. For the assessment year 2016-2017, the return of income was filed declaring total income of Rs.3,02,110. In the return of income, the assessee had declared long term capital gains of Rs.2,05,39,185 on sale of aforementioned shares. Out of the above consideration, theassessee had claimed exemption u/s 54EC and 54F of the I.T.Act amounting to Rs.50,00,000 and Rs.1,55,39,185, respectively. As regards the claim of exemption u/s 54EC of the I.T.Act, there is no dispute. With regard to exemption u/s 54Fof the I.T.Act, the A.O. during the course of assessment proceedings, had called for information from the builder, M/s.Prestige Estates Projects Limited, regarding the amount invested in construction / purchase of a flat. In reply to the A.O.’s query, the builder submitted that the assessee had made payment of only Rs.1,75,83,000 instead of Rs.1,90,00,000 claimed by the assessee.

To know more in details find the attachment file