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2017 (5) TMI 715 - AT - Income TaxDenying exemption u/s 54F - assessee has not constructed a residential house on plot of land purchased for on 87.50 lakh before the expiry of 3 years prescribed time limit from date of transfer of original asset - alternative ground by A.R. that if the long-term capital gain is to be taxed in the A.Y. 2010- 11, then the AO therefore, be directed to reduce the long-term capital gains declared by the assessee in A.Y. 2013-14 - whether amount of capital gain can be charged to tax in the third year? The learned counsel has not been able to show that the assessee had complied with the said requirement of sub-s. (4) of s. 54F of the Act. Mere purchase of residential plot is not sufficient compliance of provisions of section 54F. What was expected from the assessee was to prove on record that the assessee had purchased or constructed a house within the period specified under section 54F, which the assessee had failed to prove on record. The AO rightly rejected the claim of the assessee and order of learned CIT (A) is on the correct footings, which requires no interference. Therefore, the above ground of appeal of the assessee are rejected. The assessee has offered long-term capital gain in A.Y. 2013-14 and paid taxes thereon. This means that the said amount of long-term capital gain is being taxed twice, which cannot be intention of the Legislature. Therefore, we direct the AO to verify the claim whether the assessee has disclosed this long-term capital gain amount in A.Y. 2013-14, and if found correct, the AO should reduce then the said amount be reduced from taxable long-term capital gain of A.Y. 2013-14, and resultant refund of tax if any would be adjusted against the demand of assessment year under consideration i.e. A.Y. 2010-
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