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2017 (2) TMI 989 - AT - Income TaxEntitlement for exemption under section 54F - whether the assessee will be entitled for the benefit of deduction U/s. 54F of the Act if he demolished the new asset being the residential house purchased by him within the period of three years from the date of purchase in violation to Section 54F(3) - Held that:- The Parliament in its wisdom had enacted Section 54F of the Act in the Finance Act, 1982 with a view to encourage housing construction. Thus the intention of the legislation was not for destruction of residential building but for promoting the construction of the residential housing units. If the benefit of section 54 is extended where the new residential building is demolished without constructing another residential building within the time limit prescribed under the Act, then the purpose of the Act is defeated. As rightly pointed out by CIT(Appeals), as in the case CIT Vs. V.Pradeep Kumar & another [2006 (4) TMI 99 - MADRAS High Court] it has been categorically held that “the burden is on the assessee to prove that he had actually constructed a new residential house for the purpose of the exemption under section 54F. Section 54F emphasizes construction of residential house. The construction must be a real one. It should not be a symbolic construction. Mere construction by way of extension of the old existing house would not mean constructing a residential house as contemplated under section 54F.” In view of intentions of the Act, decisions of the Hon’ble Jurisdictional High Court and the facts and circumstances of the case, we do not find it necessary to interfere with the order of the learned Commissioner of Income Tax (Appeals) on this issue wherein he has held that in the case of the assessee exemption under section 54F cannot be granted since he has demolished the newly acquired residential house instantly for the purpose of construction of a six floored shopping complex.- Decided against assessee Unexplained investment u/s.69 - Held that:- As before us, at this stage, the assessee has not produced any evidence or advanced any argument justifying his stand and could not substantiate the reason for the discrepancy. Therefore, we do not have any option but to confirm the order of the learned Commissioner of Income Tax (Appeals) on this issue also. - Decided against assessee
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