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2019 (12) TMI 695 - AT - Income TaxBenefit of deduction u/s 54 - construction could not be started within the stipulated time and added the same amount in the income of the assessee on account of long term capital gain - HELD THAT:- We note that during the year under consideration the assessee has sold a residential house property having her 1/3rd share therein situated at East Patel Nagar New Delhi for ₹ 100 lacs and had a long term capital gain of ₹ 81,66,515/-. The assessee claimed the deduction u/s 54 by investing the entire sale proceeds (aggregate investment of ₹ 1,14,51,375 and details thereof as shown at page no. 39, 42 & 41 of the Paper Book) before the due date of filing Income Tax Return u/s. 139 of the Act for the purchase of another residential property at Green Bay Gold Village, Yamuna Expressway, Distt. Gautam Budh Nagar, UP. Construction on the said land could not be completed within the stipulated period of three years for the reasons beyond the control of the assessee i.e. Farmers agitation against Yamuna Authority related to the area in which plot was located, as seen from page 21-31 of the Paper Book and change of developer as Silverglades Pvt. Ltd. sold the project to other developer – Orris Infrastructure. In such circumstances, we are of the view that benefit of deduction cannot be denied to the assessee. We hold that assessee is entitled to the exemption claimed by her and, therefore, delete the disallowance in dispute by allowing the appeal of the assessee.
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