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2017 (2) TMI 339 - HC - Income TaxEligibility of exemption u/s 54F - as within the stipulated period the assessee has purchased plot for construction of residential house but constructions has not been completed - Whether phrase 'constructed residential house", inter-alia, will include investment in purchase of residential plot and investment in payment of development charges for use of plot ? - Held that:- The assessee has not started the construction within the specified period and the development charges have been paid to M/s Ansal Housing and Construction Ltd. for the development of the road and other facilities in the colony where the plot is situated at a pre-determined rate depending on the size of the plot. Mere payment of the development charges to the builder does not mean that the assessee has started construction, which is essential condition or claiming exemption u/s 54F of the I.T. Act. As in the case of Pawan Kumar Garg v. Commissioner of Income Tax reported in (2007 (7) TMI 294 - PUNJAB AND HARYANA HIGH COURT ) wherein also the Court has held that no benefit under Section 54F of the Act could be given to the assessee, who had failed to fulfil the primary ingredients of proving either the constructions of a house or the purchase of a house. In fact there is not such a whisper that the construction had been started or that any portion at all had been built. - Decided against the assessee.
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