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2019 (12) TMI 595 - AT - Income TaxDeduction u/s 54F denied - investment made by the assessee in construction of new house - AO has allowed the deduction for which the assessee purchased the residential plot but denied the claim of deduction towards the cost of construction of new house on the ground that the assessee has not produced any supporting evidence to show that the house was completed within the stipulated period provided under section 54F - HELD THAT:- Though the assessee has not filed any valuation report, however, the assessee produced the bank account statement showing the withdrawal of money from time to time as well as various bills and vouchers towards purchase of construction material. All these evidences go to prove that the expenditure was incurred by the assessee within the stipulated period as provided under section 54F of the Income-tax Act. Further, the Assessing Officer has not disputed the fact that the house was finally constructed by the assessee by incurring the cost of construction. There may be a dispute of correct cost of construction but it cannot be denied that the assessee has not constructed the residen- tial house after sale of the existing asset. Thus the rejection of the claim of the assessee without conducting any enquiry to verify the fact about the actual cost of construction as well as the time period of the construction of the house is not warranted and justified. Hence, once the assessee has produced the evidence in support of his claim of construction of new residential house and house was actually constructed as existed at the plot of land, then the claim of the assessee cannot be denied on mere suspicion or doubt. Hence the claim of the assessee under section 54F is allowed. - Decided in favour of assessee.
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