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2021 (2) TMI 1197 - AT - Income TaxEntitlement for deduction u/s. 54F - AO denied exemption on the ground that construction was not completed within the period of 3 years - contention of the ld. AR is that though the construction was not fully completed, still the assessee is entitled for deduction - HELD THAT:- In order to get benefit of deduction u/s. 54F, the assessee need not complete the construction of the house and occupy the same. It is enough if the assessee establishes that he had invested the entire net consideration within the stipulated period in the construction of a new house. The said view was taken in CIT v. Smt. B.S. Shantakumari [2015 (8) TMI 274 - KARNATAKA HIGH COURT] followed by this Tribunal in the case of Smt. Babita Kemparaje Urs [2017 (10) TMI 581 - ITAT BANGALORE] - Being so, in our opinion, the claim of the assessee is required to be allowed by the AO in the light of above judgments. Accordingly, we hold that assessee is entitled to deduction u/s. 54F of the act, even if the assessee has not completed the construction within the period of 3 years. However, for the limited purpose of quantification, we remit the issue to the file of AO. Addition u/s. 68 - assessee had taken loan from various parties but has not filed confirmation letters from the lenders of the loan - HELD THAT:- These credits appear in the books of account of assessee and the assessee is liable to produce the proof regarding the identity of parties, genuineness of transaction and creditworthiness. Before us, the ld. AR submitted that the assessee filed the confirmation letter along with PAN before the CIT(Appeals) and the addition cannot be sustained. However, we find no adjudication by the CIT(Appeals) on this issue. In our opinion, it is appropriate to remit this issue to the file of the AO with a direction to the assessee to produce necessary evidence with all ingredients of section 68 about the identity, genuineness and capacity of the lender. Accordingly, this issue is remitted back to the file of Assessing Officer for fresh consideration. Appeal by the assessee is partly allowed for statistical purposes.
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