9911796707
TMI Blog2014 (8) TMI 1164X X X X Extracts X X X X X X X X Extracts X X X X ..... of the capital gains arising out of sale of long term capital asset. 2. Brief facts of the case are that the assessee, an individual, filed his return of income for the relevant assessment year on 24-9-2008 declaring a total income of Rs. 88,11,800/-. During the course of assessment proceedings u/s 143(3) of the Act, the assessee's claim of exemption u/s 54F of the Act was examined by the Assessing Officer (AO). The assessee furnished all the required documents in support of his claim that he has jointly sold a site No.147 & 148 bearing Khata No.520 & 521 located at Ramagondanahalli village, Varthur Hobli, Bangalore, for a consideration of Rs. 88,22,000/- vide sale deed dated 26-9-2007. The assessee arrived at the capital gains of Rs. 87, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the Allahabad High Court in the case of (ii) CIT vs. H.K.Kapoor (234 ITR 753) and the decision of the Madras High Court in the case of (iii) CIT vs. M.Vasudevan Chettiar (234 ITR 705). The AO, however, did not accept the assessee's contention and held that the decisions on which the assessee has placed reliance are distinguishable on facts. He, accordingly, disallowed the claim u/s 54F of the Act and brought the capital gain to tax. 3. Aggrieved, the assessee preferred an appeal before the CIT(A) who confirmed the order of the AO and the assessee is in second appeal before us. 4. The learned counsel for the assessee, Shri Shreeshkumar Eshwar Hegde, reiterated the submissions made by the assessee before the authorities below and su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd, supported the orders of the authorities below and reiterated the stand of the Revenue that the assessee would be eligible for exemption u/s 54F of the Act only if the construction had commenced after the date of sale of the capital asset and the construction is also completed within the period of three years from the date of sale of the capital asset. 5. Having heard both the parties and having considered the relevant material on record, we find that there is no dispute as regards the commencement of construction of the house 1½ year prior to the date of sale. Whether the assessee would be eligible for exemption in such circumstances had come up before the jurisdictional High Court in the case of J.R.Subramanya Bhat (cited supra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... building, he was entitled to relief u/s 54F of the Act. Similar view was expressed by the Allahabad High Court in the case of H.K.Kapoor (cited supra). In view of the same, we are convinced that the assessee is eligible for exemption u/s 54F of the Act even though construction of the house commenced prior to the date of sale provided he has completed the construction within the stipulated period of three years from the date of sale. 6. In support of the contention that the construction was completed within the period of three years from the date of sale, the assessee had submitted that the bills relating to Electricity and Internet usage which are placed at pages 36 to 41 of the paper book filed before us. From the electricity bill, place ..... X X X X Extracts X X X X X X X X Extracts X X X X
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