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2012 (2) TMI 83 - ITAT INDOREPower of commissioner to invoke section 263 - deduction u/s 54F was wrongly allowed – original assessment order framed u/s 147 r.w.s. 143(3) – capital gains – agricultural land sold in A.Y. 06-07 - amount deposited for purchase of plot before filing the return - ownership of the plot not transferred to the assessee by colonizer - non-construction of residential house – Held that:- Till the hearing of this appeal, no construction of the new asset has yet started, therefore the benefit of the exemption provided u/s 54F is not available to the assessee. The Legislation has specifically provided the period of three years, therefore, it cannot be enlarged to indefinite period even if non-construction is due to failure on part of colonizer to hand over the plot. Moreover, stipulated period of three years had already expired when the revisional jurisdiction by CIT was invoked. See CIT v. V. Pradeep Kumar (2006 - TMI - 13259 - Madras High Court), Usha Gupta v. CIT (2005 - TMI - 13751 - Rajasthan High Court) Further, allowing unproved deduction/exemption renders the order of A.O. both erroneous and prejudicial to the interest of Revenue therefore, we find justification in invoking the revisional jurisdictional u/s 263 by CIT – Decided against the assessee.
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