TMI Blog2017 (2) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... d rate depending on the size of the plot. Mere payment of the development charges to the builder does not mean that the assessee has started construction, which is essential condition or claiming exemption u/s 54F of the I.T. Act. As in the case of Pawan Kumar Garg v. Commissioner of Income Tax reported in (2007 (7) TMI 294 - PUNJAB AND HARYANA HIGH COURT ) wherein also the Court has held that no benefit under Section 54F of the Act could be given to the assessee, who had failed to fulfil the primary ingredients of proving either the constructions of a house or the purchase of a house. In fact there is not such a whisper that the construction had been started or that any portion at all had been built. - Decided against the assessee. - I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing half share in his ancestral property situated at Bodla in District Agra admeasuring 3496 Sqm. The same was sold for ₹ 88.00 lacs and in the year 2005-06 the assessee invested an amount of ₹ 14,10,500/- for purchasing a plot of land for construction of a residential flat from M/s. Ansal Housing and Construction Ltd., New Delhi. This inter-alia, included the amount spent by the assessee towards external development charges of ₹ 68,750/-. The assessee also spent an amount of ₹ 125/- for seeking sanction of map for construction of the house from Agra Development Authority. The assessee, therefore, claimed for exemption, inter-alia, under Section 54F of the Income Tax Act as according to the assessee the capital gains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have also gone through the decision of Hon'ble Madras High Court in the case of CIT vs. Sardar Mal Kothari and Another (supra). In this case also the assessee had purchased the plot and substantially completed the constructions within the specified period, but the construction was not fully completed. When the matter traveled to the High Court, the Hon'ble High Court took the view that the assessee is entitled for the exemption. Coming to the facts of the case of assessee, in pith and substance, it is a fact that the assessee has not started the construction within the specified period and the development charges have been paid to M/s Ansal Housing and Construction Ltd. for the development of the road and other facilities in the co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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