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2019 (9) TMI 659 - AT - Income TaxBenefit u/s. 54F denied - investment in purchase of a new residential house - only objection of the department that the execution of sale deed and possession by the assessee is much beyond the stipulated period - HELD THAT:- Once it is demonstrated that the consideration received on transfer has been invested either in purchasing a residential house or in construction of a residential house even though the transactions are not complete in all respects and as required under the law, that would not disentitle the assessee from the said benefit. In the present case, this is not in dispute that the assessee has made investment of ₹ 1 Crore for purchase of residential house and only the registered deed was executed after more than 4 years and the possession was also taken after more than 4 years but as per the judgment of H SAMBANDAM UDAYKUMAR [2012 (3) TMI 80 - KARNATAKA HIGH COURT] the assessee will not disentitled from claiming deduction u/s. 54F of the IT Act. Respectfully following this judgment of Hon'ble Karnataka High Court, we hold that assessee should be allowed deduction u/s. 54F as claimed by the assessee because investment in purchase of a new residential house made by the assessee is of ₹ 1 Crore and it was made by the assessee on 30.06.2012 whereas the transfer of the original asset took placed on 19.09.2011. There is no dispute on these factual aspects because the same are noted by the AO and there is no observation of the AO that these facts are not correct. - Decided in favour of assessee.
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