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2019 (11) TMI 929 - AT - Income TaxDisallowance of deduction claimed u/s 54F & deduction u/s 54 - as argued assessee had invested the long term capital gain on purchase of residential plot and remain invested for more than three years - HELD THAT:- It is an undisputed fact that, firstly, the assessee has earned capital gain and has invested the same in purchase of a residential plot; secondly, the assessee has made a total investment of ₹ 63,03,005/- which is more than the exemption of ₹ 52,90,424/- claimed by her; and lastly, the assessee made this investment within the prescribed period. This payment was made to the developer Omaxe Chandigarh Extension Developers Pvt. Ltd. Consequent to that, the developer issued allotment letter and also entered into an agreement dated 05.07.2011. As per the agreement the developer was supposed to hand over the possession of plot within 18 months from the date of allotment letter - developer did not deliver the possession. Hence, the assessee could not complete the construction within the prescribed period of 3 years. This delay in construction was not attributable to the assessee. AO and the CIT (A) have denied the exemption in view of the provision of section 54 and 54F. The AO and the CIT (A) both have ignored the fact that the assessee has made a full payment to the developer and such payment was more than the amount of the deduction claimed by the assessee. Since, the delay was not on the part of the assessee but on the part of the developer and thus it was beyond the control of the assessee. In such circumstances, we are of the view that benefit of deduction cannot be denied to the assessee. Case followed SHRI VARUN SETH VERSUS ACIT, CIR-47 (1) , NEW DELHI [2019 (7) TMI 1410 - ITAT DELHI] - Decided in favour of assessee
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