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2017 (10) TMI 1143 - AT - Income TaxEligible for exemption u/s 54 - eligibility criteria - Held that:- We are of the opinion that unless the assessee has violated the provisions of section 54 in such a way that by allowing the exemption, the purpose of the legislation would be defeated, the assessee cannot be denied the exemption. In the case before us, we find that the assessee has invested in purchase of the residential flats within two years after sale of the original asset and is eligible for exemption u/s 54 of the Act subject to the fulfillment of the other conditions stipulated in the section. As we have already held that the deposit in Term Deposit A/c can be considered as compliance u/s 54(2) of the Act, provided the assessee has deposited the entire capital gains and has not availed any loan against the said A/c and has utilized the same for purchase of the new property. The issue is therefore, set aside to the file of the AO only for verification of this aspect. The other objection of the AO that the new property is purchased in the joint names of the assessee and his son also is not sustainable in view of the decision of the Hon'ble Delhi High Court in the case of CIT vs. Ravinder Kumar Arora [2011 (9) TMI 343 - DELHI HIGH COURT]. Assessee’s appeal is treated as allowed for statistical purposes.
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