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2023 (3) TMI 1157 - AT - Income TaxDeduction u/s 54F - payment for purchase of property and registration after the due date of filing of return - AO denied the claim on the ground that the assessee has not fulfilled the procedural requirement laid down by the law of depositing sale proceeds into the capital gain account scheme with a nationalized bank before the due date of furnishing of return, which was confirmed by the ld. CIT(A) - HELD THAT:- Even though the assessee has not invested the sale proceeds in Capital Gain Account Scheme, but complied with the conditions under section 54F(1) by purchasing an independent house for a consideration of ₹.2 crores by executing sale agreement on 09.01.2016 by paying advance of ₹.50 lakhs and the remaining amount of ₹.1.50 crores was paid on the date of registration of sale deed on 04.10.2017, which are not in dispute. The provisions of section 54F of the Act are beneficial provisions and are to be considered liberally in the aspect of limitation period. The investment in residential property is must which the assessee has proved with evidence and complied before the lower authorities. As following case of CIT v. Smt. Umayal Annamalai [2020 (7) TMI 630 - MADRAS HIGH COURT] we set aside the order of the ld. CIT(A) and direct the AO to allow the deduction section 54F of the Act to the assessee. Appeal filed by the assessee is allowed.
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