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TMI Blog2016 (7) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... another issue that the flat could not be completed and the matter is pending before the Hon’ble Bombay High Court seeking relief by the assessee by filing suit for direction to the Builder to complete the flat. It is impossible for the assessee to complete other formalities i.e. taking over possession for getting the flat registered in his name and this cannot be the reason for denying the claim of the assessee for deduction u/s 54 of the Act. In view of the above facts of the case, we are of the view that the assessee is entitled for deduction u/s. 54F of the Act, because the assessee has already invested a sum of ₹ 18.60 lakhs in the residential property under construction within the time limit prescribed u/s. 54F of the Act - Deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d deduction of investment made in under construction flat in the month of March,2010 amounting to ₹ 18,60,000/- under the provisions of Section 54F of the Act. The AO disallowed the claim of the assessee for deduction u/s 54F of the Act for the reason that the assessee has not registered the document for his claim for purchase of property even after three years of the said investment of capital gains in property. He also made a passing reference that the genuineness of the investment in question is not proved. Accordingly, he disallowed the claim. Aggrieved, the assessee preferred appeal before the CIT (A), who also confirmed the action of the AO by observing in Para 2.5.4 of his order as under:- 2.4.5 There is no doubt that an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... co-owners viz. Mitesh K. Patel 60% and the assessee Rajeev B. Shah 40%. They made investment to the tune of ₹ 43.10 lacs and assessee s share was ₹ 18,60,000/-. The AO rejected the claim of deduction u/s 54F of the Act only on the ground that the property is incomplete and registered document was not filed by the assessee in respect to the claim of deduction u/s 54F of the Act. The learned Counsel for the assessee before us explained that this happened due to the fact that the builder was avoiding the customers due to disputes and the project was also stalled and there was no further progress in construction of the project. To prove his point, the assessee filed civil suit before the Hon ble Bombay High Court in Suit No.162 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion u/s 54F of the Act. It is a fact that the assessee has invested this amount of ₹ 18,60,000/- in purchase of residential house within the stipulated period prescribed u/s 54F of the Act. But, it is not in the assessee s hand to get the flat completed or to get the flat registered in his name, because it was incomplete. The intention of the assessee is very clear that he has invested almost the entire sale consideration of land in purchase of this residential flat. It is another issue that the flat could not be completed and the matter is pending before the Hon ble Bombay High Court seeking relief by the assessee by filing suit for direction to the Builder to complete the flat. It is impossible for the assessee to complete other fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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