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2018 (7) TMI 1640 - AT - Income TaxExemption u/s. 54 - sale consideration was not deposited in the capital accounts scheme before due date of filing return - non adherence to conditions stipulated under the provisions of section 54F(4) - Held that:- The assessee could make investment in construction of new residential building within three years from the date of transfer of original asset to claim deduction u/s. 54F of the Act. Provisions of section 54F are beneficial provisions and are to be considered liberally. See COMMISSIONER OF INCOME-TAX VERSUS A. RAAJENDRA PRASAD [2007 (11) TMI 124 - ANDHRA PRADESH HIGH COURT] We are inclined to remit the issue to the file of the Assessing Officer to examine the fulfillment of the conditions u/s. 54F of the Act through intermediary period, i.e., from the date of transfer of the capital asset to the date of actual investment in construction of residential building. Accordingly the issue of allowability of deduction u/s. 54F is remitted to the file of the Assessing Officer with the direction to the assessee to prove the investment in the residential building as prescribed u/s. 54F of the Act before the due date of filing of return of income u/s. 139(4) of the I.T. Act, i.e., 31/03/2007. Accordingly, this issue is remitted to the file of the Assessing Officer for fresh consideration after giving adequate opportunity of hearing to the assessee. The appeal of the Revenue is partly allowed for statistical purposes.
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