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2019 (6) TMI 776 - ITAT BANGALOREDeduction u/s. 54F - claim rejected in respect of the additional floors constructed - addition as capital gains income - HELD THAT:- As per the provisions of section 54F, either the new asset is purchased or constructed within the time limit specified. Observation of CIT(A) cost of purchase and cost of construction of additional floors both cannot be considered for the purpose of allowing deduction u/s. 54F is not valid in the light of this judgment BB. SARKAR VERSUS COMMISSIONER OF INCOME-TAX, WEST BENGAL IV [1981 (5) TMI 21 - CALCUTTA HIGH COURT] . Regarding the delay in starting of the construction of 2nd and 3rd floors, it is seen that such delay is explained by giving proper reasons by saying that the assessee was having health problem of himself and apart from that, both of his daughters as noted above had some problems. There is one more objection of CIT(A) that if this is allowed then the purchase cost of new asset can be indefinitely increased through extension / additions to the new asset - addition to the new asset can only be made during the prescribed period and not after that and this is not the case of the department that the claim of the assessee is for an extension outside the permitted time limit - none of the objections of CIT(A) is valid and hence, hold that the claim of the assessee for deduction u/s. 54F in respect of the amount incurred by the assessee for construction of 2nd and 3rd floors should also be allowed. In the present case, new house was purchased and the construction of additional floors was on such new house purchased by the assessee and this new house building purchased by the assessee has been accepted as eligible for deduction u/s. 54F. Hence in my considered opinion, this Tribunal order in [2009 (5) TMI 563 - ITAT MADRAS-C] is not applicable in the facts of present case - Decided in favour of assessee
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