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2015 (1) TMI 288 - AT - Income TaxDeduction u/s 54F - Long term capital gain - assessee submitted his explanation giving details of expenditure incurred on construction, but the Assessing Officer disbelieved it by holding that the assessee has not submitted any evidence relating to credits in the bank accounts, money received on giving plot for development - whether the assessee has invested the capital gains in construction of new house property so as to claim deduction u/s 54F of the Act - Held that:- when the assessee has contended before the Assessing Officer that he has invested the capital gains derived from sale of flats in the construction of the house property without properly verifying the assessee’s contention, the Assessing Officer was not justified in rejecting the claim of deduction u/s 54F of the Act on presumptions and surmises. On a specific query made by the bench, the assessee had produced the municipal tax receipt of the house in question, investment for which was claimed as deduction u/s 54F of the Act. On a perusal of the said receipt dated 24/12/2013 prima facie it appears that a house exists in door No.15-6-190/1/J, against which the assessee has claimed deduction/s 54F of the Act. When the Assessing Officer does not dispute the fact that the assessee has derived capital gains from sale of flat, then the fact that this was utilised for construction of the house cannot be disbelieved, when no contrary material has been brought on record to show that amount was utilised in any other manner. Since, the aforesaid municipal tax receipt was not produced either before the Assessing Officer or before the CIT (A), we direct the Assessing Officer to verify the original municipal receipt and allow the claim u/s 54F of the Act. So far as addition of short term capital gain of ₹ 1,67,000/- is concerned, since the assessee himself has admitted such income, there is no reason to interfere with the same. In view of our above findings, other grounds raised by the assessee have become infructuous and hence dismissed as such. - Decided partly in favour of assesse.
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