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2014 (7) TMI 297 - AT - Income TaxIncome from LTCG – Claim of exemption u/s 54E and 54F of the Act – Held that:- In assessee’s own case Tribunal has clearly directed the AO to examine the fact whether the amount paid is for acquisition of flat or not as relying upon and to decide the issue in the light of the order of the Tribunal in the case of JAGAN NATH SINGH LODHA. Versus INCOME TAX OFFICER [2004 (6) TMI 309 - ITAT JODHPUR] - the facts have been properly verified by CIT(A) on further appeal filed by the assessee against the consequential order passed by the AO - CIT(A) observed that the amount initially advanced of ₹ 27,50,000 towards purchase of flat situated at Lakdikapool, Hyderabad, was returned back to the assessee i.e., an amount of ₹ 27 lakhs was returned and ₹ 50,000 was forfeited towards cancellation charges and the assessee ultimately constructed her house within the period of 3 years from the transfer of original asset and hence had complied with the provisions of section 54F of the Act - the amounts which were ultimately invested within the stipulated time, is to be exempted from tax although the assessee failed to technically deposit the same in the capital gain account - the intention of the Act as well as the intention of the assessee are to be considered in a right perspective – thus, the order of the CIT(A) is upheld – Decided against Revenue.
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