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2020 (1) TMI 214 - AT - Income TaxDisallowance of the deduction u/s 54 - amount contributed by the Appellant’s husband towards reinvestment in new house property - whether exemption u/s.54 of the Act are to be denied in the absences of nexus between sale consideration received on sale of old asset and source of investment in new house? - HELD THAT:- On mere reading of provisions of Section 54 of the Act, it would be clear that statute has not laid down condition for the assessee in order to get the benefit of Section 54 of the Act, the actual sale consideration received on sale of original asset should be utilized for acquisition of new house property. The only condition required to be fulfilled is that assessee should purchase a new house property within a period of one year before or after the date on which the transfer of his property took place or he should have constructed a house property within a period of two years after the sale of original asset. There is no provisions under Section 54 of the Act stipulating that assessee should utilize the amount which he obtained by way of sale for meeting the cost of new house. It is settled principle of interpretation of statute that Court do not have power to go beyond the terms of statute where the benefits are granted subject to fulfillment of certain conditions. The Courts cannot impose some other conditions in order to give benefit conferred by the statute. SEE K.C. GOPALAN [1999 (9) TMI 955 - KERALA HIGH COURT] We hold that benefit u/s.54 of the Act cannot be denied on the ground that sale proceeds of the original asset sold was not utilized for the purpose of purchase of new asset. Accordingly, we reverse the findings of the lower authorities and direct Assessing Officer to allow the benefit u/s.54 to the extent of investment made in new house. - Decided in favour of assessee.
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