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2015 (8) TMI 274 - KARNATAKA HIGH COURTExemption from capital gains u/s 54F - assessee had not completed the construction of the house within three years - ITAT allowed claim - Held that:- The words used in Section 54F are 'purchased' or 'constructed' and held that the condition precedent for claiming benefit under such provision is the capital gain realized from sale of a Long Term capital asset should have been parted by the assessee and invested either in purchasing a residential house or in constructing a residential house. It has also been held that if the assessee has invested money in constructing the residential house, merely because the construction was not complete in all respects or such building is yet to be completed fully or the building not being in a fit condition for being occupied, would by itself not be a ground for the assessee to be denied the benefit under Section 54F of the Act. Assessee had produced material evidence before the First Appellate Authority to demonstrate that the construction was on the verge of completion by producing photographs and this aspect, though not noticed in detail, same came to be noticed by the Tribunal to reject the appeal of Revenue. It was also noticed by the Tribunal that construction of the building having been completed and same having been occupied by the assessee, is also a factor to dismiss the appeal of the revenue. See Commissioner of Income-tax Versus Sambandam Udaykumar [2012 (3) TMI 80 - KARNATAKA HIGH COURT ] - Decided in favour of assessee.
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