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TMI Blog2019 (7) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... three years itself. The decision of K. RAMACHANDRA RAO [ 2015 (4) TMI 620 - KARNATAKA HIGH COURT] is apt in the present case as the Hon ble High Court held that it is not a pre-condition to invest the money in the specified Central Govt. Scheme of the sale proceeds if the property is purchased and constructed for residential purposes. DR tried to distinguish the factual matrix but the same is not tenable as the ratio and the facts determined by the Hon ble Karnataka High Court are similar to the present assessee s case as well. Therefore, the appeal of the assessee is allowed. - I.T.A. No. 6432/DEL/2015 - - - Dated:- 10-6-2019 - Shri G. D. Agrawal, Vice President And Ms Suchitra Kamble, Judicial Member For th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Assessing Officer observed that the assessee purchased a residential plot in Sector 9, Gurgaon on 12.05.2011 for an amount of ₹ 52,65,000 + Stamp duty of ₹ 2,63,250/- in the name of his wife Smt. Renu Chaudhary. After purchasing the plot, the assessee constructed a house which was completed within 3 years as the Competent Authority issued the Occupation Certificate on 25.07.2014. The assessee, however, did not deposit the unutilized part of the sale consideration in an account in a specific bank or Institution before due date of filing return u/s 139(1). The assessee before the Assessing Officer submitted that the whole of funds for purchase of new plot for the purpose of construction of new residential house ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ramchandra Rao (2014) 89, CCH 396. (Kar HC). 6. The Ld. DR distinguished the decision of Hon ble Karnataka High Court and submitted that the Assessing Officer as well as the CIT(A) rightly disallowed the claim u/s 54 made by the Assessee. 7. We have heard both the parties and perused all the material available on record. The Hon ble Karnataka High Court in case of Shri K Ramchandra Rao (supra) held as under: 3. . 2) Whether the assessee invests the entire sales consideration in construction of a residential house within three years from the date of transfer can he be denied exemption under Section 54F on the ground that he did not deposit the said amount in capital g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has purchased the residential plot from the sale proceeds of the earlier residential house. The sale proceeds were utilized for construction of residential house with the three years itself. The decision of the Hon ble Karnataka High Court is apt in the present case as the Hon ble High Court held that it is not a pre-condition to invest the money in the specified Central Govt. Scheme of the sale proceeds if the property is purchased and constructed for residential purposes. Though the Ld. DR tried to distinguish the factual matrix but the same is not tenable as the ratio and the facts determined by the Hon ble Karnataka High Court are similar to the present assessee s case as well. Therefore, the appeal of the assessee is allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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