1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

S.54 exemption at risk in multiple floors scenario

ByCA Gopal Nathani

May 4, 2023

In a limited scrutiny case of section 54 exemption inspection of newly acquired property was initiated by the AO.

Upon inspection of newly acquired property in ( 2023] 103 ITR (Trib) 329 (ITAT[Chen]) it was found by the inspector that :

(i) The GF and FF and SF were meant for commercial purpose

(iii) TF is used for residential purpose

(iv) Fourth Floor was let out for residential purpose

With the result the assessee has split the purchase value for exemption claim between commercial and residential floors and clubbed TF and Fourth floor (FF) as one unit.

The AO considered only TF as qualifying stating that the two residential floor are independent and only third floor would qualify for exemption so did the Tribunal held in this case.

The ITAT held that it was assessee’s responsibility to establish that third and fourth floors are not independent which he failed to discharge in this case.