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2019 (9) TMI 906 - AT - Income TaxCapital gain computation - accepting the valuer of land as per report of DVO which pertains to area far away from the land sold by the appellant - HELD THAT:- This issue has duly been covered in favour of the assessee by the decision of Hon’ble ITAT in the case of co-sharer of the same land, therefore, the claim of the assessee is liable to be allowed in the interest of justice. However, on the other hand, the Ld. Representative of the Department has refuted the said contention. Deduction u/s 54F - HELD THAT:- Claim u/s 54F of the Act is beneficial provisions and is applicable to the assessee when old capital assets is replaced by new capital assets in form-a residential house. Once an Assessee falls within ambit of beneficial provision, then said provision should be liberally interpreted. The Hon’ble High Court of Karnataka in the case of CIT Vs. Sambandam Udaykumar [2012 (3) TMI 80 - KARNATAKA HIGH COURT] has held that the Section 54F is a beneficial provision for promoting the construction of residential house & requires to be construed liberally for achieving that purpose. The intention of the Legislature was to encourage investments in the acquisition of a residential house and completion of construction or occupation is not the requirement of law. The words used in the section are purchased or constructed. The condition precedent for claiming benefit u/s 54F is that the capital gain should be parted by the assessee and invested either in purchasing a residential house or in constructing a residential house. Merely because the sale deed had not been executed or that construction is not complete and it is not in a fit condition to be occupied does not disentitle the assessee to claim section 54F relief If the construction was not completed within the prescribed period and the assesssee has invested the amount, therefore, the claim of the assessee is not liable to be declined u/s 54F of the Act. We are of the view that the claim of the assessee has wrongly been denied by CIT(A), therefore, we set aside the finding of the CIT(A) on this issue and allowed the claim of the assessee u/s 54F of the Act. Accordingly, this issue is decided in favour of the assessee against the revenue.
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