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2015 (12) TMI 1179 - HC - Income TaxEntitlement to benefit to the assessee under section 54F - ITAT allowed claim - Whether the Tribunal was correct in holding that the order passed by the Commissioner under Section 263 of the Act with a direction to pass the fresh assessment by considering the housing loan raised by the assessee before getting benefit under Section 54F of the Act is not erroneous and prejudicial to the interest of the revenue? - Held that:- It is not in dispute that the assessee sold the agricultural land and the consideration received is in the nature of a long term capital gain. Even before the sale of the property, he had borrowed housing loan and started construction on the site belonging to him. After the sale, the amount spent towards construction of the house is more than the consideration received by the sale of agricultural land and therefore, he is entitled to the benefit of Section 54F of the Act. Therefore, we do not see any infirmity in the order passed by the Tribunal which calls for interference. However, argument of the learned counsel for the revenue that without fully investing the money which he received as a consideration from the sale, he has completed the construction and he is claiming benefit of deduction of tax paid towards housing loan which would amount to double benefit. That is the question which is to be considered, if they arise and not at the time of granting benefit under Section 54F is available or not. - Decided against the revenue.
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