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TMI Blog2019 (1) TMI 1454X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue Authorities have simply rejected the claim of deduction u/s.54F of the Act so far as the assessee is concerned. Neither AO nor CIT(Appeals) has conducted any specific enquiry to demonstrate that the construction of the new house was from any other source other than the net consideration received from sale of land. CIT(Appeals) denied the deduction u/s.54F simply because bills and vouchers were not produced. But the factual parameters of existence of new residential house was not denied by the CIT(Appeals). Nor he has shown the fund utilized for such construction was from other sources. In absence of these specific enquiry and not granting deduction u/s.54F to the assessee, is not permitted within the ambit of welfare legislation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct to the prayer of condonation. On the issue of condonation of delay of appeal, we have gone through the sworn in affidavit filed by assessee and heard the Ld. DR. After considering the reasons stated in the affidavit we are of the view that the delay in filing the appeal has been satisfactorily explained. In view of these facts, delay in filing the appeal is condoned and appeal is admitted for hearing. 3. On perusal of the grounds of appeal, it is observed that the assessee has raised both, the legal grounds as well as ground on merits. However, at the time of hearing, the legal grounds raised by assessee were not pressed . Hence, they are dismissed as not pressed . 4. The ground on merits pertains to the allowability of deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hough completion certificate was by the Government registered contractor and consulting engineer, the completion certificate from municipal council had not been produced. The Assessing Officer, accordingly, computed long term capital gain at ₹ 57,04,400/-. 5. The arguments before the First Appellate Authority by assessee was that the entire sale consideration that has been received has been utilized for the construction of the house and that Inspector of the Department has examined and verified the place and have submitted the concerned report. Therefore, deduction in accordance with section 54F of the Act which is net consideration received and used for construction of the residential house that should be allowed, whereas, the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pute to the fact that one capital asset was sold and thereafter, new house was constructed. That both the Revenue Authorities in their respective orders have agreed that the Inspector had visited the site and has reported that residential house has been constructed consisting of 6 RCC rooms on the ground floor. That without negating this report, Revenue Authorities have simply rejected the claim of deduction u/s.54F of the Act so far as the assessee is concerned. Moreover, neither Assessing Officer nor CIT(Appeals) has conducted any specific enquiry to demonstrate that the construction of the new house was from any other source other than the net consideration received from sale of land. The CIT(Appeals) denied the deduction u/s.54F of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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