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2021 (7) TMI 914 - HC - Income TaxExemption u/s 54F - Whether all the mandatory requirements and conditions were fulfilled on the facts and circumstances of the case? - HELD THAT:- Exemption under Section 54 of the Act is dependant on the date of acquisition of the property and not on the date of payment made in respect of such property. It is also noteworthy to mention that to claim an exemption under Section 54F of the Act, it is not necessary that the same sale consideration should be used for construction of a new house property. It is also noteworthy that Section 54F of the Act is a beneficial provision, which has been enacted with an object to promote investment in housing and enable the assessee to save tax on capital gains. It is a well settled rule of interpretation that benevolent provision should be interpreted liberally bearing in mind the object for which the provision is enacted. From narration of aforementioned facts, it is evident that the assessee had complied with the conditions stipulated u/s 54F of the Act and was entitled for exemption. The finding recorded by the tribunal that since, payments were made prior to one year before the date of transfer of shares and therefore, the assessee is not entitled to claim exemption u/s 54F of the Act cannot but be termed as perverse.
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