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2021 (7) TMI 774 - AT - Income TaxExemption u/s 54F - disallowance being long term capital gain on sale of plot - whether the ld. CIT(A) is correct in holding that as per the provisions of section 54F, the investment in the new asset has necessarily to be made from the net consideration received on the sale of the original asset and not from any other source? - HELD THAT:- In ‘CIT vs. Kapil Kumar Agarwal’ [2015 (12) TMI 1075 - PUNJAB AND HARYANA HIGH COURT] it has been held that section 54F nowhere envisages that the sale consideration obtained by assessee from the original capital asset is mandatorily required to be utilized for purposes of meeting the cost of the new asset and where the investment made by assessee, although not entirely sourced from capital gain, but, was within stipulated time and more than the capital gain earned by him, the assessee was entitled to exemption under section 54F. The assessee’s claim for exemption under section 54F of the Act is allowed and the disallowance being long term capital gain on sale of plot, is deleted. Deemed dividend u/s 2(22)(e) - HELD THAT:- It is evident that there was an opening deposit/loan of the assessee, Shri Sudhir Srivastava, in the books of M/s Sun Eye Hospital & Laser Center Private Limited. The assessee has given an advance to M/s Sun Eye Hospital & Laser Center Private Limited, Lucknow. As rightly contended, there cannot be any addition as per section 2(22)(e). Accordingly, ground Nos.4 & 5 are accepted and the addition to the extent for deemed dividend under section 2(22)(e) of the Act is deleted.
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