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2019 (1) TMI 890 - AT - Income TaxEntitled for deduction u/s. 54F - residential house purchased beyond the two years prescribed limit u/s. 54F(1) - assessee should have purchased a new house on or after 9th Nov, 2011 on or before 8th Nov, 2014, however, the assessee has purchased residential house property on 16th Sep, 2015 which was beyond the two years prescribed limit u/s. 54F(1) - Held that:- In the case of the assessee also the property in question could not be purchased because of unavoidable circumstances as the first party seller of the property was expired before execution of the sale deed because of legal proceedings related to the clearance of tile of the property there was delay in execution of final sale deed as elaborated supra in this order. We consider that the assessee has only invested an amount of ₹ 30 lacs as explained above in this order within the stipulated period prescribed in the provision of section 54F of the act, therefore, we restrict the deduction u/s. 54F of the act to the amount of ₹ 30 lacs as final agreement could not be executed because of unavoidable circumstances in the form of pending legal proceedings due to sudden demise of the first party seller of the property. Accordingly the appeal of the assessee is partly allowed. Disallowance of claim of depreciation & business expenses - Held that:- We have heard the rival contention on this issue and find that it is very clear that the assessee has only earned from stitching during the year under consideration and assessee has failed to substantiate its claim with relevant supporting material therefore, we do not find any error in the decision of the Ld.CIT(A). Accordingly the appeal of the assessee on this issue is dismissed.
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