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2024 (3) TMI 36 - ITAT AHMEDABADRevision u/s 263 - admissibility of deduction u/s 54F - As per CIT Assessment assessment order is erroneous on account of noting this fact of the claim u/s. 54F being incorrectly allowed to the assessee since the land was purchased by the assessee beyond the alleged prescribed period of two years from the date of transfer of the original asset - HELD THAT:- As gone through the provisions of section 54F we agree that as per section 54F of the Act, a time period of three years is provided to the assessee for construction of a house property for claiming exemption of capital gains under the said section. Even DR was unable to controvert this interpretation of the provision of law before us. In view of the same, it is abundantly clear that in the present case that the CIT has misinterpreted the provision of law to hold that the assessee was ineligible to claim exemption u/s. 54F of the Act on the investment made in the land beyond two years since it was beyond the time limit prescribed in law and, accordingly holding the assessment order to be in error causing prejudice to the Revenue for having allowed the assessee this claim. Thus no reason to confirm the order of the CIT, finding his exercise of revisionary power to be based on an incorrect interpretation of the provisions of law on the issue - Appeal of the assessee is allowed.
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