Under what circumstances is the denial of exemption u/s 54 of the Income Tax Act justified?

IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCHES “A” : HYDERABAD
(THROUGH VIDEO CONFERENCE)

BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER

AND

SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER

I.T.A. No. 1508/HYD/2019
Assessment Year: 2011-12

Chandra Prakash Reddy
Velma
HYDERABAD
[PAN: AASPV7653E]
(Appellant) 

Vs

Income Tax Officer,
Ward-14(2),
HYDERABAD
(Respondent)

For Assessee : Shri K.A.Sai Prasad, AR
For Revenue : Shri Sunil Kumar Pandey, DR

Date of Hearing : 22-03-2021
Date of Pronouncement : 03-05-2021

O R D E R

PER S.S.GODARA, J.M. :

This assessee’s appeal for AY.2011-12 arises from the CIT(A)-6, Hyderabad’s order dated 07-06-2019 passed in appeal No.10620/2018-19/A3/CIT(A)-6, in proceedings u/s.143(3) r.w.s.147 of the Income Tax Act, 1961 [in short, ‘the Act’].

Heard both the parties. Case file perused.

2. The assessee has canvassed the following substantive grounds in the instant appeal: 

“1.The order of the learned First Appellate Authority is not correct in law or on facts and in both.

2.The learned First Appellate Authority is not justified in confirming the disallowance of exemption of Rs.1,02,64,008/- claimed u/s.54 of the Income Tax Act.

3.The learned First Appellate Authority failed to appreciate the facts that all ingredients/conditions laid down for claiming exemption u/s.54 of the Income Tax Act were fulfilled before the Assessing Officer and hence the denial of exemption u/s.54 is not justified.

4. The learned First Appellate Authority failed to appreciate the legal disputes and other circumstances under which the constructions could not be completed.

5.The appellant craves leave to add, amend or alter any of the grounds at the time of hearing of appeal”.

3. The assessee’s grievance, in a nutshell, is that both the learned lower authorities have erred in law and on facts in disallowing his Section 54 deduction claim of having reinvested the capital gains in issue in house property. We notice in this factual backdrop that the CIT(A)’s lower appellate order has been passed ex-parte. 

To know more in details find the attachment file