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TMI Blog2015 (8) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year, sold property situated at Dr.Shivaram Karanth Nagar under a sale deed dated 06.10.2008 and capital gain on sale of said property was invested by the assessee by purchasing a residential site at Nagarbhavi, II Stage on 13.10.2008. The assessee claimed deduction under Section 54F of the Income Tax Act, 1961 (for short 'Act') which came to be disallowed by the assessing officer vide assessment order dated 18.11.2011, on the ground that the assessee had not completed the construction of the house within three years as per Section 54F of the Act. 3. Being aggrieved by said order, appeal came to be filed by the assessee and found favour. In other words, Appellate Commissioner accepted the contention of the assessee and allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... substantial question of law as framed in the appeal memorandum be formulated, adjudicated and answered in favour of the revenue. 6. Having heard the learned Counsel appearing for the revenue and on perusal of the records, we are not inclined to admit this appeal for following reasons: It would emerge from perusal of records that immediately after sale of the property on 06.10.2008, assessee purchased another residential plot on 13.10.2008 and on 02.06.2010 she obtained approval of the building plan from the local authority namely Bruhat Bengaluru Mahanagara Palike and commenced the construction. However, it was not completed within 3 years i.e., on or before 05.10.2011. Hence, the assessing officer during the course of assessment proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appeal of assessee. 8. Section 54F of the Act is a beneficial provision which promotes for construction of residential house. Such provision has to be construed liberally for achieving the purpose for which it is incorporated in the statute. The intention of the legislature, as could be discerned from the reading of the provision, would clearly indicate that it was to encourage investments in the acquisition of a residential plot and completion of construction of a residential house in the plot so acquired. A bare perusal of said provision does not even remotely suggest that it intends to convey that such construction should be completed in all respects in three (3) years and/or make it habitable. The essence of said provision is to ensu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'purchased' or 'constructed' and held that the condition precedent for claiming benefit under such provision is the capital gain realized from sale of a Long Term capital asset should have been parted by the assessee and invested either in purchasing a residential house or in constructing a residential house. It has also been held that if the assessee has invested money in constructing the residential house, merely because the construction was not complete in all respects or such building is yet to be completed fully or the building not being in a fit condition for being occupied, would by itself not be a ground for the assessee to be denied the benefit under Section 54F of the Act. It has been held by the co-ordinate bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oducing photographs and this aspect, though not noticed in detail, same came to be noticed by the Tribunal to reject the appeal of Revenue. It was also noticed by the Tribunal that construction of the building having been completed and same having been occupied by the assessee, is also a factor to dismiss the appeal of the revenue.
In the circumstances narrated hereinabove, we are of the considered view that no substantial questions of law arises for being formulated and adjudicated.
11. In the result, we proceed to pass the following:
ORDER
(i) Appeal is hereby dismissed.
(ii) Order passed in ITA No.63/Bang/201 dated 13.11.2013 by Income Tax Appellate Tribunal, Bengaluru is hereby affirmed. X X X X Extracts X X X X X X X X Extracts X X X X
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