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2006 (4) TMI 99 - HC - Income TaxExemption u/s 54F - Whether, the Appellate Tribunal had valid materials to give a finding that the assessee had constructed a residential house before June 21, 1988, and thus eligible for exemption u/s 54F? - HELD THAT:- The documents relied on by the assessees before the Tribunal were mere letters addressed by Y. R. Srinivasan, who is the architect. The said architect had given a quotation and bill dated June 27, 1988, and his acknowledgment of the receipt of a sum of Rs. 75,000 from each of these two assessees, which are not sufficient to prove that there were construction of residential houses. The said documents and other evidence were produced first time before the Tribunal. But the Revenue had relied on the inspection report and also verified with the Madras Corporation and further they have taken photographs of the place and all these documents reveal that there were only an extension of the old building. Further learned counsel submitted that section 54F is a beneficial provision and the same should be construed liberally. For the purpose of exemption u/s 54F, the assessees must construct residential houses within three years from the date of transfer. Hence the assessees are not entitled to relief u/s 54F of the Act. Thus, we are of the opinion that there were no construction and the claims made by the assessees for exemption u/s 54F were factually unacceptable. Hence, we answer the question in favour of the Revenue and against the assessees.
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