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TMI Blog2021 (1) TMI 686X X X X Extracts X X X X X X X X Extracts X X X X ..... n the AO becomes free to charge the amount of exemption earlier allowed as income u/s.45 of the third year. We, therefore, modify paras nos. 10 and 11 as under : 10. We have found it as an admitted position that the assessee deposited balance capital gain in the specified capital gain account scheme. This makes the assessee entitled to exemption u/s.54F in respect of the year under consideration. However, the AO is free to examine as to whether the assessee constructed the house within the stipulated period of three years. In case such construction is not done or the other relevant conditions are not satisfied, then the AO will be at liberty to invoke the proviso to section 54F and make suitable addition in the income of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital gain account scheme, for which exemption u/s.54F was claimed. Thereafter, it observed in para 9 of its order that construction of residential house was an essential condition for availing exemption u/s.54F for which no cogent material was placed on record by the assessee for showing that a residential house was constructed on the said land within a period of 3 years from the sale of the original capital asset. That is how, the Tribunal restored the matter to the AO directing the assessee to: furnish documentary evidence to show that the residential house was constructed within the period of three years from the date of sale of capital asset (date of sale of last plot). If the assessee is able to prove construction of house within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then,- (i) the amount by which- (a) the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of the new asset as provided in clause (a) or, as the case may be, clause (b) of sub-section (1), exceeds (b) the amount that would not have been so charged had the amount actually utilised by the assessee for the purchase or construction of the new asset within the period specified in sub-section (1) been the cost of the new asset, shall be charged under section 45 as income of the previous year in which the period of three ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital gain account scheme. A categorical finding has been recorded in para 2 of the order that the assessee did deposit capital gain in specified capital gain account scheme. In that view of the matter, the assessee becomes entitled to exemption u/s.54F of the Act for the year under consideration. However, it is for the AO to examine as to whether the assessee has constructed the house within period of three years or not. In case the house is not so constructed or the other relevant conditions are not satisfied, then the AO becomes free to charge the amount of exemption earlier allowed as income u/s.45 of the third year. We, therefore, modify paras nos. 10 and 11 as under : 10. We have found it as an admitted position that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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