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2019 (11) TMI 332 - AT - Income TaxLTCG - Claiming exemption u/s. 54F - deduction allowed against the income from sale proceeds of the flat - income accrued to assessee on sale of flats - HELD THAT:- In the present case, the assessee has constructed 12 flats out of which 4 flats were sold in the assessment year 2013-14 and partial capital gain was accrued to the assessee during this period. From the table submitted by the assessee and not disputed by the department, it is clearly discernible that the assessee has incurred huge expenditure of ₹ 1,91,22,401/- and ₹ 1,92,80,023/- during financial year 2012-13 relevant to assessment year 2013-14 and obviously, this cost has been incurred by the assessee towards construction of flats, which were kept by him for his residential purposes and for claiming exemption u/s.54F. Therefore, no hesitation that the assessee is very much entitled for claiming exemption u/s.54F of income accrued to him on sale of flats during present assessment year 2012-13. Consequently, direct the AO to allow exemption u/s.54F of the Act to the assessee and recalculate the capital gain while giving appeal effect in pursuance to this order. Charging of interest u/s. 234A & 234B - HELD THAT:- As find that Hon'ble Jharkhand High Court in the case of Ajay Prakash Verma Vs. ITO [2013 (1) TMI 140 - JHARKHAND HIGH COURT] has held that the revenue can levy the interest only on the total income declared in the return of income and not on the income. Therefore, the AO is directed to delete the interest levied u/s. 234A and 234B of the Act as the same has been charged on the assessed income.
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