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TMI Blog2018 (4) TMI 325X X X X Extracts X X X X X X X X Extracts X X X X ..... time prescribed in the Act involving section 54 and thereby the assessee is entitled to claim exemption u/s. 54 - Merely because assessee had availed house building loan of ₹ 82.50 lacs from bank for purchasing a new residential unit, that cannot act as a disqualification for claim of exemption u/s 54 when the primary conditions imposed in Sec. 54 of the Act were satisfied. - Decided in favour of assessee - I.T.A No. 41/Kol/2016 - - - Dated:- 4-4-2018 - Shri M. Balaganesh, Accountant Member And Shri S.S. Viswanethra Ravi, Judicial Member For the Appellant : Shri D.S. Damle, FCA, ld.AR For the Respondent : Shri Arindam Bhattacharya,Addl.CIT, ld.Sr.DR ORDER Shri S.S.Viswanethra Ravi, JM This appeal by the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the issue in hand is covered by the decision of Hon ble High Court of Punjab Haryana in the case of Kapil Kr. Agarwal reported in (2016) 66 taxman. Com 191 (P H) and referred to paras 16 17 of the said order and argued that the assessee is entitled to claim exemption u/s. 54 of the Act and prayed to allow the ground nos. 1 2 of assessee s appeal challenging the denial of exemption u/s. 54 of the Act. 6. On the other hand the ld. DR relied on the orders of the AO CIT-A. 7. Heard the rival submissions and perused the material on record and the case laws relied on by the assessee. The facts remained admitted that the cost of new residential unit is more than the capital gain noted by the AO CIT-A in their respective ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court in the case of Kapil Kumar Agarwal is reproduced herein below for better understanding:- 16. Adverting to the judicial pronouncements, in K.C. Gopalan's case (supra), while considering identical issue, it was observed by the Kerala High Court as under:- . . . . . The assessee has to construct or purchase a house property for his own residence in order to get the benefit of section 54. The wording of the section itself would make it clear that the law does not insist that the sale consideration obtained by the assessee itself should be utilised for the purchase of house property. The main part of section 54 provides that the assessee has to purchase a house property for the purpose of his own residence within a pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... construction of the new house, the amount that was received by way of sale of his old property as such was not utilised. It was held by the Kerala High Court that no provision is made by the statute that the assessee should utilise the amount which he obtained by way of sale consideration for the purpose of meeting the cost of the new asset. It was held that Section 54 only provides that the assessee has to purchase a house property for the purpose of his own residence within a period of one year before or after the date on which the transfer of his property took place or he should have constructed a house property within a period of two years after the date of transfer. It was further held that entitlement of exemption under Section 54 rel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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