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TMI Blog2021 (1) TMI 686X X X X Extracts X X X X X X X X Extracts X X X X ..... Act'). 2. We have heard the rival submissions through Virtual Court and gone through the relevant material on record. The short issue before the Tribunal in the order u/s 254(1) of the Act was about the availability or otherwise of exemption u/s.54F of the Act, which was allowed by the ld. CIT(A) and the Department preferred appeal there against. It has been recorded in para 2 of the impugned order that the assessee sold certain property and inter alia deposited balance capital gain in specified capital gain account scheme, for which exemption u/s.54F was claimed. Thereafter, it observed in para 9 of its order that construction of residential house was an essential condition for availing exemption u/s.54F for which no cogent material was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit ; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset : Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then,- (i) the amount by which- (a) the amount of capital gain arising from the transfer of the original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd of the third year from the date of sale, if the assessee has constructed a new house, which otherwise fulfills the requisite conditions. If the assessee does not pass such examination of the AO, then the amount of exemption allowed earlier shall is withdrawn or to put it simply becomes chargeable to tax u/s.45 as income of the previous year in which the period of three years expires. 4. Instantly, we are concerned with the initial year when the assessee deposited the amount in capital gain account scheme. A categorical finding has been recorded in para 2 of the order that the assessee did deposit capital gain in specified capital gain account scheme. In that view of the matter, the assessee becomes entitled to exemption u/s.54F of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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