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2017 (7) TMI 353 - AT - Income TaxEligibility to deduction u/s 54 - Held that:- The provisions of section 54 of the Act are beneficial and are to be considered liberally for reasonable bonafide cause but investment in residential property is mandatory which the assessee has proved with substantial evidence before the lower authorities. Prime facie, the total amount paid for acquisition of new Flat got constructed through the builder much before the extended due date under section 139(4) of the Act. The assessee has direct investment in house property and therefore not opted in capital gain account scheme. The assessee entered into construction agreement and agreement for land purchase on 03.02.2011, which was not at all disputed by the Department, very much before provisions of section 139(1) of the Act. In the case of Jagtar Singh Chawla of Punjab and Haryana High Court [2013 (4) TMI 499 - PUNJAB AND HARYANA HIGH COURT] the assessee has paid substantial amount for purchase of residential property before the extended due date of filing of return and the assessee was eligible for exemption and not liable to pay any capital gain tax. Assessee complied the conditions and is eligible for exemption under section 54 of the Act - Decided in favour of assessee.
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