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2016 (10) TMI 1119 - AT - Income TaxClaim of deduction / exemption u/s. 54 - requirement to invest in a bank account under the capital gain account scheme - Held that:- During the year the assessee has made payment of ₹ 1527000/- to the builder namely Ajay Enterprises Pvt. Ltd from whom the "new house" was purchased. Out of this amount of ₹ 1527000/- the builder has appropriated ₹ 950000/- toward another flat No. C-408 booked by the assessee with the builder. It should not be reason for making disallowance/addition. The fact of the matter is that the assessee has invested a total sum of ₹ 6174683/- in the eligible new house (A-907) upto 04/12/2008 i.e. well within the period specified under section 54 of Income Tax Act, 1961. The assessee being an old man of around 76 years could not keep track of the adjustment made by the builder. However, he made the substantive compliance of section 54 by making the required investment in the new house within the period specified u/s 54 of Income Tax Act, 1961. The requirement to invest in a bank account under the capital gain account scheme is a procedural requirement to ensure that investment is made in a residential house as claimed in the return of income. Merely because of technical breach / non-compliance the benefit due to the assessee by the legislature cannot be denied particularly when there is substantive compliance made. Section 54 is a beneficial section and as held by Hon'ble Apex Court in the case of Bajaj Tempo Ltd. vs CIT (1992 (4) TMI 4 - SUPREME Court) the provisions of a beneficial section should be construed liberally. - Decided in favour of assessee.
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