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2017 (12) TMI 1060 - AT - Income TaxPartial rejection of claim for deduction u/s 54 - assessee held 1/3rd share in Flat - requirement that the sale proceeds realised on sale of old residential house alone should be utilised - Held that:- For the purpose of sec. 54 of the Act, we have to see whether the assessee has completed the construction within three years from the date of transfer of old asset. In the instant case, there is no dispute that the assessee took possession of the new flat within three years from the date of sale of old residential flat. Accordingly, we are of the view that the assessee has complied with the time limit prescribed u/s 54 of the Act. Since the amount invested in the new flat prior to the due date for furnishing return of income was more than the amount of capital gain, the requirements of depositing any money under capital gains account scheme does not arise in the instant case. Further, the Hon’ble High Court has held in the case of K.C.Gopalan [1999 (9) TMI 955 - KERALA HIGH COURT ]that there is no requirement that the sale proceeds realised on sale of old residential house alone should be utilised. Thus we are of the opinion that the assessee is entitled for deduction of full amount of capital gains u/s 54 of the Act, as he has complied with the conditions prescribed in that section. Accordingly, we set aside the order passed by Ld CIT(A) and direct the AO to allow the deduction u/s 54 of the Act as claimed by the assessee.
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