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2018 (2) TMI 875 - AT - Income TaxDisallowing rebate u/s 54F - investment made in residential house prior to date of sale of house - Held that:- Sub-section 4 of section 54F prescribes appropriation of sale consideration of original asset towards provision of new asset made within one year before the date of transfer of original asset, two years from the date of transfer or construction of new in-house property, within three years from the date of transfer of original receipt but the Act does not prescribe any condition as to the date of commencement of construction of house property which may be commenced even before the date of transfer of original receipt - See Commissioner of Income-tax Versus Bharti Mishra [2014 (1) TMI 446 - DELHI HIGH COURT] Similarly in the case of Commissioner of Income Tax vs J.R. Subramanya Bhat reported in (1986 (6) TMI 7 - KARNATAKA High Court) had expressed similar view and had held that investment made towards construction of house property prior to the date of transfer should also be eligible as deduction for the purpose of section 54 of the Act. On the facts of this case, we find that the construction of house property had been completed within three years from the date of transfer and accordingly, we are of the view that the assessee is eligible for exemption u/s 54F in respect of the two disputed amounts viz. ₹ 12 lakh paid on 20.06.2008 and ₹ 14,91,697 paid on 22.08.2008 which were expended prior to the date of transfer of original asset. We allow the ground raised by the assessee.
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