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2015 (12) TMI 1815 - AT - Income TaxDeduction u/s. 54 - substantive advances made for purchasing the house property in question to housing society/builder - capital gains for purchasing the residential house in question - HELD THAT:- There can hardly be any quarrel that this statutory provision envisages three basic conditions to be fulfilled by the claimant assessee. First one is that the new property can be purchased within a period of one year before executing the sale deed. Second one is that the same can be purchased within two years after the sale deed. Third and final condition stipulates construction of a new house within three years from the date of transfer. It has come on record that the assessee has paid a gross sum of ₹ 1,15,00,000/- to the builder/housing society. This amount is almost equal to the gross sale price of ₹ 1,18,00,000/-. We repeat that conveyance deed in his favour is dated 31-03-2008. The builder thereafter applied for AUDA’s permission on 24-012-2008 which finally came on 15-12-2009 prescribing some construction regulations. We are of the view in these facts that the same has to be read applicable from the date of application. The same falls within three years of 11-05-2006. We are further of the view that the assessee has already advanced a sum much more than the impugned capital gains for purchasing the residential house in question. A co-ordinate bench of the tribunal in SHRI HASMUKH N. GALA VERSUS ITO [2015 (8) TMI 1204 - ITAT MUMBAI] allows a similar claim of section 54 deduction in case involving substantive advances made for purchasing the house property in question by holding the same to mean as ‘purchase’ for the purpose of the impugned deduction - the assessee’s act of having made substantive payment of ₹ 1,15,00,000/- to housing society/builder followed by his getting the specified residential house constructed satisfies all the necessary conditions stipulated in section 54 - Decided in favour of assessee
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