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| The Tax Publishers2020 TaxPub(DT) 0127 (Ahd-Trib) INCOME TAX ACT, 1961
Section 54F
Denial of exemption under section 54 merely on the ground that construction of property, purchased by assessee, was not completed within time was not justified as property was finally acquired by assessee and also, payment for purchase of property was made well within time specified under section 54F.
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Capital gains - Exemption under section 54F - Investment in new residential property under construction - Denial of benefit on the ground that construction was not completed within--Payment made well within time and property finally acquired by assessee
Assessee claimed exemption under section 54F as regards investment made in new residential property which was under construction. AO denied assessee's claim on the ground that construction was not completed within three years. Held: Admittedly, property was finally acquired by assessee as evident from copy of sale deed which was available on record. It was also not in dispute that the payment for purchase of property was made well within time specified under section 54F. Accordingly, impugned transaction could not be treated as colourable device to escape from capital gain tax and assessee could not be denied exemption under section 54F merely on the ground that construction was not completed within time.
Supported by: CIT v. Sambandam Udaykumar (2012) 345 ITR 389 (Karn) : 2012 TaxPub(DT) 1804 (Karn-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 68
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