TMI Blog2011 (9) TMI 1136X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the order of CIT(A) in not allowing deduction u/s. 54F of the Act. For this, the assessee has raised following two effective grounds: 2. For that on the facts and circumstances of the case the Ld. CIT(A) should have directed the A.O. to allow exemption in respect of the Investment of ₹ 3,04,400/-, ₹ 10,00,000/- and ₹ 3,00,000/- which was eligible for exemption u/s. 54F of the I. T. Act, 1961. 3. For that the Ld. A.O. erred in denying the exemption u/s. 54F when the capital fain earned by the assessee was duly invested for the purpose of acquisition of the residential houses within the time allowed under the law. 3. Brief facts are that the assessee claimed the sale of shares as Long Term Capital Gains and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no case that the sale consideration received by him while disposing of his property on 28th October, 1983 was utilised for the purpose of acquiring the house property at Calicut, the assessee is not entitled to the benefit of s. 54. The learned counsel sought to place reliance on three decisions, namely, Stanes Motors (South India) Ltd. vs. CIT (1975) 100 ITR 341 (Mad) : TC 16R.144, CIT vs. Samnugger Jute Factory Co. Ltd. (1953) 24 ITR 265 (Cal) : TC 26R.254 and Basant Kumar Aditya Vikram Birla vs. CIT (1968) 70 ITR 657 (Cal) : TC 26R.254, in support of his contention. We do not find any merit in the above contention raised by the Revenue. A mere reading of s. 54 would make it clear that the statute has not laid out a condition for the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall be nil; or (ii) if the amount of the capital gain is equal to or less than the cost of the new asset, the capital gain shall not be charged under s. 45 and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase or construction, as the case may be, the cost shall be reduced by the amount of the capital gain. The assessee has to construct or purchase a house property for his own residence in order to get the benefit of s. 54. The wording of the section itself would make it clear that the law does not insist that the sale consideration obtained by the assessee itself should be utilised for the purchase of house property. The main part of s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his own savings prior to the date of limitation for expiry of investment of capital gain, the assessee has fulfilled the condition in view of the decision of Hon ble Kerala High Court in the case of K. C. Gopalan (supra). Even the assessee has made investment prior to the expiry of limitation, and the provisions of section 54F(1) clearly suggests that even the investment can be made within a period of one year before or two years after the date on which the transfer took place purchased or within a period of three years after that date constructed, but in the present case the house is constructed within three years and investment is also made within three years. Hence, we are of the view that the assessee is eligible for section 54F exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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