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2015 (10) TMI 1754 - HC - Income TaxEntitlement to exemption under Section 54 - whether the assessee failed to construct a habitable house within a period of three years from the date of transfer - ITAT allowed the claim - Held that:- The benefit of section 54(1) is available, if the assessee has, within a period of one year before or two years after a date on which the transfer took place, purchased, or has, within a period of three years after that date, constructed, a residential house in India. The fact that the assessee sold the residential house at Chennai onn 28.11.2007 and the fact that he purchased three adjoining residential house-sites on 10.3.2008 are not in dispute. The fact that the purchase of the residential sites was at a cost of ₹ 1,18,94,408/- and the fact that an advance of ₹ 70,00,000/- was paid to a builder on 28.6.2008 are also not in dispute. Therefore, the assessee has actually purchased three residential sites within a year and had entrusted the work of construction to a builder. If the completion of construction had been delayed on account of the delay in the Airports Authority of India in giving clearance and the Town Planning Authority giving approval to the building plan, the benefit of section 54 cannot be denied to the assessee. After all, the object of section 54(1) is to ensure that if the sale proceedings are invested in a residential house, the assessee should be entitled to the benefit. - Decided in favour of assessee.
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