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2019 (7) TMI 1613 - ITAT HYDERABADRevision u/s 263 - enhanced sale consideration received by the assessee due to the delay in the sale transaction on account of the fault of the buyer of the property termed as ‘interest’ - HELD THAT:- It is pertinent to mention that there is no finding by the Ld. CIT as to what was the rate of interest charged by the assessee for the delayed payment. It can be only construed that the entire payment received by the assessee was only on account of ‘sale consideration’. Therefore, there is no mistake committed by the Ld. AO while passing his order, being prejudicial to the interest of the Revenue. Hence the finding of the Ld. CIT on this count is erroneous. Granting deduction u/s. 54F - assessee has not constructed the house within the stipulated period provided under the Act in order to claim the benefit of deduction - HELD THAT:- Various higher judiciaries cited by the assessee before the Ld.CIT has held that if the assessee invests the entire capital gains for construction of the residential house within the stipulated period and if there is a delay in the construction due to the fault of the builder / promoter wherein the assessee has no control over the builder/promoter for such delay then the assessee cannot be held to be in fault and shall be entitled for the benefit of deduction u/s 54F of the Act. Considering these decisions which are also cited in the Order of the Ld. CIT the order of the Ld. AO for granting deduction U/s. 54F of the Act has merits and not erroneous. Therefore, the finding of the Ld. CIT that the order of the Ld. AO is prejudicial to the interest of the Revenue is devoid of merits. Considering these facts and circumstances of the case, we are to the considered view that the Ld. CIT is not right in his rem to invoke his powers U/s. 263 of the Act on these two counts in the case of the assessee. We hereby quash the order of the Ld. CIT passed U/s. 263 - Decided in favour of assessee.
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