TMI Blog2016 (6) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... sideration received on transfer has been invested either in purchasing a residential house or in construction of a residential house even though the transactions are not complete in all respects and as requited under the law, that would not disentitle the assessee from the said benefit. - Decided in favour of assessee - ITA NO. 303/2015 - - - Dated:- 15-2-2016 - MR. JAYANT PATEL AND MRS. S. SUJATHA JJ. For the Appellants (By Sri.E.I.Sanmathi, Adv) JAYANT PATEL J., JUDGMENT The appellant revenue has preferred the appeal on the following substantial question of law: Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that assesee is entitled for exemption under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Being aggrieved by the said order, the assessee preferred an appeal before the CIT(A) which came to be dismissed. The assessee carried the matter before the Tribunal in ITA 933(BNG)/2012 and the Tribunal after considering the submissions of the revenue observed at para-8 as under: 8. We have perused the orders and heard the rival contentions. There is no dispute that on 28-07-2008, the builder gave an allotment letter to the assessee which clearly mentions that ₹ 7.70 Crores for villa no.75 stood paid by the assesses. The sale of shares giving rise to the capital gains was on 20-07- 2007. May be it is true that the agreement for construction entered by assessee with builder gave an outer date, which went beyond the three yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icial provision of promoting the construction of residential house. Therefore, the provision has to be construed liberally for achieving the purpose for which it was incorporated in the statute. The intention 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 the benefit under the provision is that capital gains realized from sale of capital asset should have been invested either in purchasing a residential house or in constructing a re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecorded by the Tribunal as considered as it is, the issue is already covered by the decision of this Court in case of CIT vs. Sambandham Udayakumar reported in 345 ITR 389. If the Tribunal has followed the said decision of this Court, no substantial question of law would arise for consideration in the present appeal. 6. However, learned counsel for the appellant raised two contentions: i) One was that the since the earlier decision of this Court in case of Sambandham Udayakumar (supra), the tax amount was less, the matter was not carried before the Apex Court and therefore, the said decision may not be holding the field. ii) The learned counsel in furtherance of his submission contended that as the word used is constructe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstruction is done with the approval of the authority . Further, in clause (b) language was Such a building has been constructed . As per clause (a), the requirement was the land is occupied by any building. It is on account of said languages, meaning of the word constructed came up for consideration before the Apex Court. Whereas, in the present case, the relevant aspect is that, utilization of the capital gain in construction of a residential house. Such being the basic difference, we do not find that the said decision in case of Giridhar G.Yadalam referred supra would be of any help to the learned counsel for the Revenue. 10. The resultant situation would be that, issue stands covered by the decision of a co- ordinate Bench of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
