TMI Blog2015 (8) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... ely because the construction was not complete in all respects or such building is yet to be completed fully or the building not being in a fit condition for being occupied, would by itself not be a ground for the assessee to be denied the benefit under Section 54F of the Act. Assessee had produced material evidence before the First Appellate Authority to demonstrate that the construction was on the verge of completion by producing photographs and this aspect, though not noticed in detail, same came to be noticed by the Tribunal to reject the appeal of Revenue. It was also noticed by the Tribunal that construction of the building having been completed and same having been occupied by the assessee, is also a factor to dismiss the appeal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue further pursued the matter before the Tribunal which did not find favour and as such, revenue is in appeal before this Court contending inter alia that on account of aseessee having not complied with rigour of Section 54F of the Act whereunder the word used is 'constructed' and assessee has not placed any material on record to show that he had commenced the construction and completed the same within three years from date of sale of her property and as such assessee would not be entitled to the benefit of long term capital gains flowing from Section 54F of the Act. 4. We have heard Sri.K V Aravind, learned Panel Counsel for appellant-revenue and perused the records. 5. Sri.K V Aravind, learned Counsel appearing for the rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 131 of the Act to the assessee to verify as to whether the assessee had invested the capital gains in the construction of the residential house. Pursuant to the same, the husband of the assessee appeared and answered the query raised by the assessing officer. To a pointed question No.3 put to the husband of the assessee by the Assessing Officer as to whether he has constructed the residential house within a period of three years, he has stated as under: I got the construction plan approved by the BBMP on 02.06.2010. But, due to certain financial constraints, I could not complete the construction within the stipulated period . The assessing officer has rejected the claim of the assessee only on the ground that the construction has no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ived capital gains would invest same by constructing a residential house and once it is established that consideration so received on transfer of his Long Term capital asset has invested in constructing a residential house, it would satisfy the ingredients of Section 54F. If the assessee is able to establish that he had invested the entire net consideration within the stipulated period, it would meet the requirement of Section 54F and as such, assessee would be entitled to get the benefit of Section 54F of the Act. Though such construction of building may not be complete in all respect that by itself would not disentitle the assessee to the benefit flowing from Section 54F . In fact, appellate Commissioner has not only taken note of the ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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'. For such purpose, the capital gain realized should have been invested in a residential house. The condition precedent for claiming benefit under the said provision is the capital gain realized from sale of capital asset should have been parted by the assessee and invested either in purchasing a residential house or in constructing a residential house. If after making the entire payment, merely because a registered sale deed had not been executed and registered in favour of the assessee before t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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