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2014 (3) TMI 1017 - AT - Income TaxNon-granting of deduction u/s. 54F - Held that:- Smt. Samyukta Bullayya had already given possession of property to the assessee vide the first sale agreement dated 21st July, 2004. Due to the reasons beyond the control of the parties, the vendor lost that property and got allotted alternate plot in exchange of the first plot. Being so, the perusal of the facts shows that there is no fault from the side of the assessee and it is beyond its control and the payment for which original plot made was adjusted towards sale consideration of the second property as the cheque issued for purchase of second property was not at all encashed as certified by the Bank as above, we are of the opinion that the date of the second sale agreement relates back to the date on which the agreement of sale was originally executed in favour of Smt. Samyukta Bullayya. Therefore, the assessee is deemed to be the owner of the property with effect from the date of first sale agreement dt. 21.7.2004 and period of holding the asset is to be computed from 21.07.2004 and the capital gain so arrived is not short term capital gain and it is long term capital gain as the assessee held the property for more than 36 months. In view of this, we are inclined to hold that the assessee is entitled for deduction u/s. 54F of the Act as claimed by him and the same is to be granted to the assessee - Decided in favour of assessee
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