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2015 (11) TMI 1452 - AT - Income TaxDeduction u/s 54 - transfer of three adjacent plots - plot in the name of assessee and family members (Join ownership) - the house purchased from Rajasthan Housing Board was skeleton in which it was allotted as was envisaged by comparing the other houses which existed there. - Held that:- The first property was originally booked by Smt. Krishna Beniwal under Kalptaru Yojna of Rajasthan Housing Board in the year 1992 and thereafter she made payment up to 15/4/2006 to the Board by obtaining loan from bank of Rajasthan in the joint name of Krishna Beniwal and the appellant. The possession of house was taken by Smt. Krishna Beniwal and appellant jointly in November, 2006. The assessee filed an application before Rajasthan Housing Board on 31/5/2007 to adde her name, which has been accepted by it. The registration letter for lease deed was issued in the joint name of Smt. Krishna Beniwal and the appellant. All the payments were made 17 months prior to the date of sale of first flat i.e 20/10/2007. The possession letter was issued in the name of Smt. Krishna Beniwal on 7/11/2006 and possession was to be taken by Smt. Krishna Beniwal on or before 14/12/2006, which was taken by her on 15/11/2006. Perpetual lease was executed on 23/6/2007, in which name of Smt. Krishna Beniwal and Smt. Seema Singh Beniwal had been shown. As held by the various courts that purchase of constructed house in self financing scheme from any authority would be treated construction not purchase of residential house. Thus we uphold the order of the ld CIT(A) on first exemption claim U/s 54F of the Act. Therefore, we are not giving any finding on additional expenditure incurred on finishing of the house. It is clarified by the CBDT that purchase of plot of land is a part of residential house for claiming of deduction U/s 54F of the Act. The revenue itself has admitted that it is a habitable as a servant quarter, which in other words, was habitable for human being either servant or master or any employee. There is also no restriction that what percentage of the size of flat should be used for residential purposes either under the Income Tax law but there is a restriction of maximum construction by the local authorities of the respective states. It is also admitted fact that the assessee electric connection in the constructed premises and the first flat was sold by the assessee on 20/10/2007 and second flat was sold on 15/3/2008 whereas the assessee constructed room at plot No. C-114, Hanuman Nagar, Jaipur up to 15/3/2010 which is within three years from the date of sale of first flat i.e. 20/10/2007. Thus, the assessee is entitled to deduction U/s 54F of the Act on second investment at Hanuman Nagar property at Rs. 29,37,200/-. Accordingly, we reverse the order of the ld CIT(A) on this point.
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