TMI Blog2011 (4) TMI 1448X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case in allowing the relief of ₹ 14,10,500/- made on account of disallowance of investment made in purchase of land u/s. 54F of the Act. 1(a). By doing so, the Ld. CIT(A)-I, Agra has failed to appreciate that the assessee has neither constructed any residential house, nor has deposited any amount under capital gain deposit scheme. 2. For the disposal of this common ground of appeals, both the learned AR and DR agreed that the facts relevant to the appeal in the case of Sanjay Kumar be taken. We, therefore, are disposing of both these appeals on the basis of the facts in the case of Shri Sanjay Kumar in ITA No. 427/Agra/2009. The brief facts are that the assessee earned total long-term capital gains amounting to ₹ 46,81 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts and the rival contentions and find that the appellant s share in the sale consideration of ₹ 94,90,000/- works out to ₹ 46,81,688/- against which exemption has been claimed as under : U/s. 54F Rs.14,10,500/- U/s. 54EC Rs.30,00,000/- Rs.44,10,500 Thus, the entire sale consideration to the extent of ₹ 44,10,500/- stands invested in exempt assets. The appellant is entitled for exemption u/s. 54F of the Act in respect of the plot of land purchased for the purpose of construction of residential property. Consequently, the AO is directed to allow exemption u/s. 54F of the Act. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh the order of the tax authorities below as well as the case laws, as have been relied upon before us. The only issue involved before us relates to the exemption claimed by the assessee u/s. 54F. Section 54F requires that where capital gain arises on the transfer of any asset, not being a residential house, the assessee can take the benefit of exemption of the said capital gain, provided the assessee has within a period of one year before or two years after the date of transfer purchased a residential house or within a period of three years after that day constructed a residential house. The provisions of section 54F are pari materia to the provisions of section 54. The exemption under section 54 is available on the transfer of the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 54F, is appropriated towards purchase of a plot and also towards construction of a residential house thereon, the aggregate cost should be considered for determining the quantum of deduction under section 54/54F, provided that the acquisition of plot and also the construction thereon are completed within the period specified in these sections. This circular in our opinion will not assist the assessee. The circular is applicable in case where the assessee has purchased the plot and has also completed the construction within the specified period u/s. 54F. This circular states that under these circumstances, the cost of plot will form integral part of the cost of construction of the residential house. In the case of the assessee, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manian vs. AAC (supra). In this case also, the assessee had invested full sale consideration in the purchase of a plot of land and thereafter invested ₹ 10,75,000/- in the construction of the building. Under these facts, the Tribunal allowed the exemption to the assessee u/s. 54F by holding that the section does not prescribe completion of construction of the residential house within the stipulated period. This decision will also not help the assessee, as in the case of assessee he has not started the construction within the specified period at all. 7. We 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 pl ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
