9911796707
TMI Blog2016 (5) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... ief facts of the case are that the assessee, an individual, filed his return of income for the assessment year 2009-10 on July 31, 2009, admitting total income of Rs. 10,08,400. The income comprises salary and income from other sources and also long-term capital gains on sale of a residential house. The assessee claimed the long-term capital gain as exempt under section 54 of the Income-tax Act, 1961, on the ground that he has utilised the same for purchase/construction of an independent house. During the assessment proceedings under section 143(3) of the Income-tax Act, the Assessing Officer observed that the assessee has entered into a development agreement with M/s. Sai Venkateswara Estates, Hyderabad, for construction of an independent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re Boards (P.) Ltd. v. CIT [2015] 376 ITR 596 (SC). 4. Having regard to the rival contentions and material on record, we find that in the case of the assessee, the assessee has utilised the entire capital gains within the period of one year but due to certain circumstances beyond the control of the assessee, the construction of the house could not be completed within the specified period. The facts and circumstances before us are similar to the case before the co-ordinate Bench of this Tribunal in the case of Narasimha Raju Rudra Raju v. Asst. CIT [2013] 26 ITR (Trib) 681 (Hyd) wherein the Tribunal has held as under (page 688) : "11. . . . We agree with the contention of the learned authorised representative that the provisions contained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he amount invested towards purchase/construction of the residential house with supporting evidence." 5. The hon'ble Supreme Court in the case of Fibre Boards (P.) Ltd. v. CIT [2015] 376 ITR 596 (SC) has held as under (page 621) : "38. We are of the view that the aforesaid construction of section 54G would render nugatory a vital part of the said section so far as the assessee is concerned. Under sub-section (1), the assessee is given a period of three years after the date on which the transfer takes place to purchase new machinery or plant and acquire building or land or construct building for the purpose of his business in the said area. If the High Court is right, the assessee has to purchase and/or acquire machinery, plant, land a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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