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2022 (8) TMI 604 - HC - Income TaxDeduction u/s 54F - dates relevant for examining the claim of the assessee for computation of business income - Whether Tribunal has erred or not in denying the deduction under section 54F on the investment made prior to the date of transfer of original asset? - whether or not the denial of deduction for investment prior to transfer can be denied at all in respect of a house constructed within time? - HELD THAT:- CIT (Appeals) has not noted all the sequential events in the explanation given by the assessee. But has arrived at a quick finding for extending the relief under Section 54F - Turning to the findings of the Tribunal, we are of the view that the Tribunal has given importance only to the time of the payments made by the assessee or sanction of the loan by the ICICI Bank in favour of the assessee’s husband. The test ought to be when the residential house was completed. Either the finding on the crucial aspect is incomplete or not satisfactory. As rightly argued by Mr Kumar relevant to the consideration is when the assessee has completed the residential house. Even assuming the loan was sanctioned in February 2012, that by itself is not conclusive. According to him, the conclusive circumstance is the completion of construction of a residential house three years from the sale of the original asset. As we notice a serious flaw in the application and appreciation of Section 54F to the circumstances stated by the assessee, we prefer to remit the matter to the CIT(Appeals) for a decision afresh. Hence for statistical purposes, the questions are answered in favour of the assessee and against the Revenue.
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