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TMI Blog2012 (7) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... house thereon. The construction of this residential house was completed in the month of March, 2008. Since the construction was completed within three years of transfer of capital asset, the ratio as laid down in the case of Subramaniya Bhat (1986 (6) TMI 7 (HC)) is applicable to the facts of this case as it has been clearly held in that case that for claiming deduction u/s 54, the construction of the house should be completed within the prescribed time limit and date of commencement of construction is not material for claiming deduction - Decided in favor of assessee. - IT APPEAL NO. 928 (AHD.) OF 2012 - - - Dated:- 29-6-2012 - D.K. TYAGI, T.R. MEENA, JJ. ORDER D.K. Tyagi, Judicial Member This is Revenue's appeal against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... available to the assessee against construction of house property, if the same is constructed after the transfer of capital asset and the same should be completed within three years from the date of transfer of the capital assets. In this regard the A.O. placed reliance on the case of Smt. Shantaben P. Gandhi v. CIT reported in 129 ITR 218 (Guj.). The A.O. has also distinguished the case relied upon by the assessee on the case of CIT v. Subramaniya Bhat reported in 165 ITR 517. The A.O. was of the opinion that in the case of Subramaniya Bhat ( supra ) the construction of the house property was started one year before the transfer of the capital assets and the same was completed within 3 years from the date of transfer of capital as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .T. Act on these investments. As per the provisions of Section 54 of the I.T. Act, deduction under this section is allowed for construction of a residential house, if the following conditions are fulfilled:- ( i ) There must be a transfer of long term capital asset being a residential house. ( ii ) The appellant must have constructed a residential house within prescribed time. ( iii ) The construction of residential house should be completed within three years from the date of original transfer. I find that these conditions are fulfilled in the case of the appellant in the following manner:- ( i ) The appellant had sold residential house situated at 3/6, Golden Apartment, Usmanpura, Ahmedabad for a sum of Rs. 35,00,000/- on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e residential house was completed after the transfer of capital asset i.e. 3/11/2007 and within three years of transfer of capital asset. In fact, the evidences placed on record indicate that the construction of residential house was completed in the month of March, 2008. The evidence available on record indicate that, the appellant has made payments towards construction of house property of Rs. 4,25,000/- in the F.Y. 2007-08 and the A.O. has allowed deduction u/s 54 against these payments. 2.4 In view of the above, I hold that the appellant is eligible to claim deduction u/s 54 of the I.T. Act. The A.O. is directed to allow the same accordingly." 4. Aggrieved by the order of ld. CIT(A) now the Revenue is in appeal before us. 5. A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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