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2015 (11) TMI 1062 - AT - Income TaxDisallowance of exemption u/s 54F - CIT(A) allowed part claim - Held that:- Claim of deduction u/s 54F cannot be denied for the sole reason that the assessee did not have sufficient balance in his bank account as on the date of issue of cheque for purchase of a plot of land for the reason that the cheque was honoured as and when it was presented; this is a beneficial provision and has to be liberally construed; factually it cannot be stated that the assessee has not invested the said amount in the purchase of a plot, before the filing of the return of income on 30.9.2008. The Tribunals and Courts have in a number of decisions held that, there is no requirement in law, that the same funds, which were obtained on the sale of a asset, should be utilized for the purchase of a plot. The moment a cheque has been issued by a person, in pursuance of a contract of purchase, in our view, it is utilization of funds, as there is a legal commitment by the assessee. When the transaction materialized it relates back to the date of agreement and the date of encashment is of no relevance. See Sanjeev Lal vs. CIT [2014 (7) TMI 99 - SUPREME COURT] - Decided in favour of assessee. Disallowance u/s 40(a)(ia) - Held that:- The provision made for the electricity charges is apparently for the period 14.3.2008 to 31.3.2008. This being the case, the provision for this period of ₹ 76,584 is allowable as deduction therefore the disallowance made is deleted and the ground of appeal is allowed - Decided in favour of assessee.
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