TMI Blog2012 (9) TMI 726X X X X Extracts X X X X X X X X Extracts X X X X ..... en after completion of three years of the transfer of the original asset. In such a situation, when a house is completed after expiry of three years from the transfer of the original asset, the assessee is entitled to exemption under section 54F as decided in CIT v. Sardarmal Kothari [2008 (6) TMI 15 - MADRAS HIGH COURT] The assessee had submitted application under Rule 46A admitting additional evidence which in fact, could not be submitted by the assessee before completion of the assessment but on having completed the house, after the expiry of three years from the transfer of the original asset along-with electricity bill which was not accepted by the CIT(A) as the same should have been accepted by the CIT(A) - in favour of assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the entire consideration of sale of capital asset in purchase of land, cost of foundation boundary wall also purchase of material at the time of visit of the Inspector. Action of the Ld. CIT(A) is illegal and bad in law. 4. That there is no justification in not allowing deduction claimed u/s 54F of the Act by holding that house was not constructed on the date of inspection by the Inspector when entire consideration of sale of capital asset stood invested within the stipulated period of three years in purchase of land, construction of foundation, boundary wall and purchase of material for further construction. House considering of one bedroom, kitchen bathroom along-with boundary wall, stood completed in November 2009 within 3 ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... construction was made by Sh. Ganshyam Kathuria brother of Mr. Pritam Kathuria of Reliance Estate Agencies, Neelam Chowk, Faridabad. The notice under section 131 was issued to Mr. Ganshyam Kathuria. The letter sent to Mr. Ganshyam Kathuria was received back with postal remarks that "No such person". The same was confronted to the assessee and the assessee in response thereto submitted that Sh. Ganshyam Kathuria had died but no evidence of his death was produced by the assessee. The assessee submitted to verify the contents from one Sh. O.P. Jhanb, partner of Reliance Estate Agency. The AO not being satisfied with the explanation of the assessee did not allow the claim of long-term capital gain and accordingly made the addition. 4. Before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter few days of the expiry of three years. As per section 54F, if the assessee being an individual, the capital gain which arises from the transfer of any long term capital asset, not being a residential house and the assessee had after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house, referred to as the new asset, then the capital gain is exempt, if whole of the net consideration of the original asset is invested in the new asset i.e. residential house. Now the question arises in the present case whether the assessee had fulfilled the conditions under section 54F or not, has to be perused. In the present case, the assessee had invested the total sal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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