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2012 (7) TMI 218 - AT - Income TaxLong-term Capital gains - deduction u/s 54 - partial denial on ground that deduction is available against construction of house property, if the same is constructed after the transfer of capital asset and completed within three years from the date of transfer of the capital assets - assessee purchased and invested Rs 26.19 lacs in construction of residential property before transfer of capital asset - Held that:- It is undisputed that assessee sold his residential house on consideration of sum of Rs. 35 lacs on 03.11.2007 and has spent a sum of Rs. 30.44 lacs on purchase of plot and on construction of a residential house thereon. The construction of this residential house was completed in the month of March, 2008. Since the construction was completed within three years of transfer of capital asset, the ratio as laid down in the case of Subramaniya Bhat (1986 (6) TMI 7 (HC)) is applicable to the facts of this case as it has been clearly held in that case that for claiming deduction u/s 54, the construction of the house should be completed within the prescribed time limit and date of commencement of construction is not material for claiming deduction - Decided in favor of assessee.
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