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2018 (10) TMI 56 - AT - Income TaxClaim of exemption u/s 54F denied - addition on the ground that assessee has not utilized the capital gain amount within the time prescribed u/s 139 (1) - due date mentioned in section 54 (2) would be the due date of return of income u/s 139 (1) or the date by which the assessee filed the return u/s 139 (4) - Held that:- The assessee vehemently stated that the assessee had made substantial investment towards the purchase of new property and because builder could not complete the construction of the residential house, therefore, the claim of exemption cannot be denied as per CBDT Circular No.471 dated 15.10.1986 and 672 dated 16.12.1993. Per contra the DR strongly supported the findings of the CIT(A). The undisputed fact is that the assessee has made substantial investment towards the purchase of new residential house. The Assessing Officer himself has given exemption to the extent of ₹ 38.49 lacs as against the claim of ₹ 53.34 lacs. A similar issue arose before the coordinate bench in the case of Seema Sabharwal [2018 (2) TMI 863 - ITAT CHANDIGARH]rovisions of section 54(2) are almost identically worded as in section 54F(4) of the Act. Admittedly, in this case, the assessee has invested the amount for the purchase / construction of the house within the stipulated period as also observed above while deciding the first issue. The assessee has proved such investment during the assessment proceedings and, thus, the assessee has complied with the requirement of substantive provisions and, thus, is entitled to the claim of exemption u/s 54F of the Act. In view of this, we direct the Assessing officer to grant exemption to the assessee as permissible under the provisions of section 54 - Decided in favour of assessee
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