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2008 (10) TMI 250 - AT - Income TaxDisallowance of exemption claimed u/s 54F - Purchase of residential flat - long-term capital Gains - HELD THAT:- The main part of s. 54 provides that assessee has to purchase a house property for the purpose of his own residence within a period of one year before or after the date on which transfer of his property took place or he could have constructed house property within a period of two years after the date of transfer. We find that sale proceeds of the capital assets received by the assessee was utilized or appropriated for different purpose and assessee had no personal funds to acquire a residential house and the residential house was purchased from the loans borrowed from the bank, as admitted by the assessee during the course of hearing. In these circumstances, Since the sale proceeds or the capital gain accrued to the assessee was not wholly appropriated towards the purchase of the residential house within a specified period, the assessee is not entitled to claim exemption of whole capital gain u/s. 54F. Whatever amount was utilized in purchase of a residential house, the corresponding deduction u/s. 54F, is to be allowed and the Revenue authorities have already allowed the corresponding exemption to the assessee. We, therefore, find no infirmity in the order of the CIT(A) and we confirm the same. Accordingly, the appeal of the assessee is dismissed. In the result, appeal of the assessee is dismissed.
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