Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Taxpayer fails to Construct Residential House within Prescribed Time: ITAT disallows Section 54 Deduction under Income Tax Act [Read Order]
Income Tax
The Delhi ITAT disallowed the Section 54 deduction claim as the taxpayer failed to construct a residential house within the specified time. Sandeep Hooda sold a property in 2014, claiming a deduction of Rs. 5,63,74,550 under Section 54. Despite an agreement, no house was constructed by the deadline.
The AO observed the absence of essential amenities and approved construction plans. The CIT(A) accepted the rural location exemption but failed to validate the investment. The ITAT upheld the AO's decision, asserting non-compliance with the prescribed timeframe. The taxpayer's claim was dismissed, affirming the AO's denial of the deduction.
The revenue's appeal was allowed accordingly.
