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TMI Blog2018 (3) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... he developer of the flat. In other words, the assessee has utilised the entire capital gain by way of making payment to the developer of the flat. Section 54(2) does not say that in case the assessee could not get the possession of the property, he is not entitled for exemption under Section 54 of the Act. The requirement of Section 54 of the Act is that the capital gain shall be utilised or appropriated as specified in Section 54(2) of the Act. The assessee has complied with the conditions stipulated in Section 54(2) of the Act, therefore, the CIT(Appeals) has rightly allowed the appeal of the assessee. Hence, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given to the assessee. In the absence of completion of construction, according to the Ld. D.R., the assessee is not eligible for deduction under Section 54 of the Act. 5. We heard the Ld. Departmental Representative and perused the relevant material available on record. On perusal of the order of the CIT(Appeals) it appears that the entire sale consideration was reinvested in a new flat within the stipulated period. The question arises for consideration is when the payment was made within the stipulated period and the construction could not be completed by the developer of the flat, whether the assessee is eligible for deduction under Section 54 of the Act? 6. We have carefully gone through the provisions of Section 54 of the Act whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gain is equal to or less than the cost of the new asset, the capital gain shall not be charged under section 45 ; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase or construction, as the case may be, the cost shall be reduced by the amount of the capital gain. ( 2) The amount of the capital gain which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset took place, or which is not utilised by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption under Section 54 of the Act. Section 54(2) of the Act clearly says that in case the capital gain, which is not appropriated by the assessee towards purchase of new asset or which is not utilized in purchase of residential house or construction of residential house, then it shall be deposited in a specific account. In this case, it is not the case of Revenue that capital gain was not appropriated or it was not utilised. The fact is that the entire capital gain was paid to the developer of the flat. In other words, the assessee has utilised the entire capital gain by way of making payment to the developer of the flat. 8. Section 54(2) of the Act does not say that in case the assessee could not get the possession of the property, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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