The Tax Publishers2021 TaxPub(DT) 0557 (Chen-Trib)

INCOME TAX ACT, 1961

Section 54F

No doubt, completion certificate is one evidence for having completed construction of building, but it is not material evidence to draw adverse inference against assessee, when assessee has placed all other evidences which indicate completion of construction of building and thus denial of deduction on said ground could not be held as justified.

Capital gains - Deduction under section 54F - Allowability - Non-furnishing of completion certificate from municipal authorities

Revenue was in appeal against the order of CIT(A) allowing claim of deduction under section 54F on the ground that assessee failed to furnish completion certificate from municipal authorities. Held: AO erred in coming to the conclusion that building construction was not completed only on the basis of non-furnishing of completion certificate from municipal authorities. No doubt, completion certificate is one evidence for having completed construction of building, but it is not material evidence to draw adverse inference against assessee, when assessee has placed all other evidences which indicate completion of construction of building. CIT(A) had after considering relevant facts has rightly held that construction of building was completed within three years from the date of transfer of original asset and hence, Tribunal was inclined to uphold the findings of CIT(A) and reject grounds taken by the revenue.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2015-16



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