ACIT, Circle-47(1), New Delhi V. Varun Seth, New Delhi

MA 778/DEL/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 4105 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 24 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-05-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2015-2016
• Appeal Filed On: 06-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 54; 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : ‘Friday’ NEW DELHI BEFORE DR. B.R.R.KUMAR, ACCOUNTANT MEMBER & SHRI ANUBHAV SHARMA, JUDICIAL MEMBER M.A. No.778/Del./2019 (ITA No.-1388 /Del./2019) (Assessment Year: 2015-16) ACIT, Circle-47(1), New Delhi vs Shri Varun Seth 1, Under Hill Road, Civil Lines, New Delhi-110054 PAN : AANPS4857Q Applicant Respondent Assessee by Sh. Karan Kamra, CA Revenue by Shri Zahid Parvez, Sr. DR ORDER PER ANUBHAV SHARMA, J.M. The Miscellaneous application has been filed by the Revenue in respect of order dated 14.05.2019 by which the appeal of assessee was allowed. 2. Heard and perused the record. It was submitted on behalf of the revenue that the Bench has not answered under what condition of Section 54 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’), the Assessee is entitled to claim deduction u/s 54 of the Date of Hearing 27.05.2022 Date of Pronouncement 31.05.2022 2 M.A. No. 778/Del.2019 (ITA no. 1388Del/2019) Act. It was submitted that assessee could not construct house on land nor deposit amount of capital gain except to the extent of 25,10,000/- but entire capital gain was allowed by the Bench. It was submitted there is factual error in the order whereby investment of purchase of plot made on 24.11.2012 and 20.03.2013 out of the part sale consideration received as advanced on 07.04.2014 was accepted. It was submitted that the mistake apparent on record be rectified Section 254(2) of the Act. 3. On behalf of the assessee it was submitted that what is argued is beyond the realm of rectification and the Bench has dealt into all factual and legal aspects while allowing the appeal. 4. It can be appreciated from para no. 8 of its order that the Bench has taken into consideration, while observing, that date of investment made in purchase of residential plot is not relevant because what is relevant is that the investment made in the purchase of land forms an integral part of the cost of new residential house and the same is allowable as exemption along with cost of construction of the new residential house within a period of three years. However, no legal position contrary to these observations of the Bench has been cited to consider any case of rectification on the basis of mistake apparent from record. 5. Further, it can be observed that in para no. 9 of the order, the Bench has taken into consideration the circumstances under which construction could not be concluded and thereafter relying judgment of Hon’ble Supreme Court in India in Sanjeev Lal vs. CIT (2014) 365 ITR 389, which provides purposive interpretation of Section 54 and to give the liberal approach to the assessee, the Bench observed that intention of statue as provided in Section 54 has been fully satisfied by the assessee in the present case. These observations answer the 3 M.A. No. 778/Del.2019 (ITA no. 1388Del/2019) objection raised in the application as to how the bench concluded compliance of conditions of Section 54 of the Act. 6. Even otherwise the grounds for miscellaneous application do not make out any case of mistake apparent from record as whatever has been submitted is with regard to the observations or the reasoning delivered by the Bench. Unless same are established to be contrary to any settled proposition of law cited by the parties, there can be no occasion to exercise powers u/s 254(2) of the Act. Consequently, the Miscellaneous Application is dismissed. Order pronounced in open court on this 31 st day of May, 2022. Sd/- Sd/- (Dr. B.R.R.KUMAR) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 31.05.2022 *BINITA, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT, NEW DELHI