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2018 (11) TMI 1323 - ITAT VISAKHAPATNAMDeduction u/s 54F - failure to comply with the statutory requirement - purchase of property within stipulated time u/s 139 - sources funded from the bank loan - whether the assessee would be entitled for deduction u/s 54F even if the assessee acquired the new property from the bank loan instead of utilizing the sale consideration for the purpose of acquiring the new property - Held that:- This issue has been considered by the Hon’ble Madras High Court in the case of CIT Vs. R. Srinivasan [2013 (1) TMI 213 - MADRAS HIGH COURT] relied upon by the assessee and held that the assessee is entitled for deduction u/s 54F even if the source was funded from the bank loan. This issue on similar facts was considered in the case of Smt. Sumati Siva Kumari Vs. ITO [2016 (12) TMI 447 - ITAT CHENNAI] for the assessment year 2013-14 for which the Accountant Member is one of the signatories held that the assessee is entitled for deduction u/s 54F even if the amount is sourced from the bank loan. In the instant case, there is no dispute that the assessee has purchased the property within the stipulated time also we hold that the assessee is entitled for deduction u/s 54F on the amount invested for purchase of new property from the bank loans also. - decided in favour of assessee.
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