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2020 (10) TMI 620 - AT - Income TaxDisallowance u/s 54F - appellant has not invested the sale proceeds in the capital gains account scheme as required u/s 54F - A.O. had held that assessee had purchased an apartment and not constructed the apartment - assessee did not deposit capital gains amount in the capital gains account scheme before the date of furnishing of return of income u/s 139 - HELD THAT:- In the instant case, assessee had expended in July, 2017 i.e. well within period of 3 years from the date of sale of original asset. Therefore, going by the dictum laid down in the case of K. Ramachandra Rao[2015 (4) TMI 620 - KARNATAKA HIGH COURT] though the assessee has not deposited capital gains amount in the capital gains account scheme within the prescribed time, since the impugned expenditure was incurred within a period of 3 years from the date of sale of original asset, the assessee was entitled to proportionate deduction u/s 54F of the Act. Assessee has produced proof of payment to M/s. Mas Furniture who also had acknowledged the receipt of the amount and has stated that amount received from assessee was towards furnishing of apartment of the assessee in Sankalap Central Park. The stamp duty is part of the cost of the apartment and expenditure incurred for furnishing the apartment is a cost of improvement. We hold that assessee is entitled to proportionate deduction u/s 54F - Decided in favour of assessee.
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