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2015 (5) TMI 1098 - AT - Income TaxExemption u/s 54F against the Long Term Capital Gain denied - Held that:- The assessment was completed on 31.01.2014. From these facts, it is evident that the inquiries were conducted through Inspector of Income-tax till 29.01.2014. The outcome of these inquiries has been used by the Assessing Officer against the assessee to arrive at the conclusion that no construction was made by the assessee so as to be entitled to exemption u/s 54F. The assessment was completed on 31.01.2014 i.e., within two days from conducting the enquiries by the Inspector of Income-tax. When the inquiry was conducted almost in the last week of January 2014, naturally it cannot be possible to confront the outcome of the inquiry to the assessee and allow him sufficient time to furnish the reply in rebuttal. Therefore, in our opinion, it would meet the ends of justice if the orders of the authorities below are set aside and the matter is restored back to the file of the Assessing Officer. We order accordingly and direct the Assessing Officer to supply the copy of the Inspector Report, Panchnama and any other material if collected behind the back of the assessee which the Department proposes to utilize against the assessee. The Assessing Officer is also directed to allow adequate opportunity to the assessee for submission of his reply as well as any evidence in support of his claim that construction of residential house was done within stipulated time as per Section 54F. - Decided in favour of assessee by way of remand. Charging of interest u/s 234B - Held that:- Both the parties agreed that the charging of interest u/s 234B is consequential. We, therefore, direct the Assessing Officer to re-compute the interest in accordance with law, after the re-determination of income.
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