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2020 (10) TMI 661 - AT - Income TaxLTCG - Benefit of deduction u/s. 54 denied - CIT(A) concluded that Assessee did not construct a residential house within a period of 3 years from the date of transfer of the original asset, on the basis that the photograph filed as evidence does not reveal that the construction of the house was on the plot of land purchased by the Assessee and that there was no completion certificate produced to substantiate the claim of the Assessee - HELD THAT:- CIT(A) has ignored the other evidence on record which prove construction and completion of construction of a residential house. Merely because the sale deed had not been executed or that construction is not complete and it is not in a fit condition to be occupied does not disentitle the assessee to claim s. 54F relief. As in SAMBANDAM UDAYKUMAR [2012 (3) TMI 80 - KARNATAKA HIGH COURT] followed similar decision rendered by the Hon’ble Madras High Court in the case of Sardarmal Kothari [2008 (6) TMI 15 - MADRAS HIGH COURT]. We are therefore of the view that even on the basis of non-completion of construction of the new asset within the period of 3 years, the deduction u/s.54 of the Act cannot be denied to the Assessee. In the present case, we are satisfied on the basis of evidence produced by the assessee that a building had come up over the site purchased by assessee and the purchase of site and cost of construction was much more than the capital gain arrived at by the assessee on sale of ancestral house. CIT(Appeals) has gone by the fact that there was absence of Occupation Certificate but this will not be a ground to deny the claim of assessee for deduction u/s. 54 of the Act, as other evidence filed by the assessee sufficiently demonstrates that assessee has constructed a residential house within the period of stipulated by law. The findings of the CIT(Appeals) in this regard are very vague and cannot be the basis to deny the claim of assessee for deduction u/s. 54 of the Act. - Decided in favour of assessee.
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