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TMI Blog2021 (6) TMI 623X X X X Extracts X X X X X X X X Extracts X X X X ..... ,1961 ['the Act' for short]. 2. The facts relating to the issue are stated in brief. The assessee sold an ancestral property on 11.8.2011 for a consideration of Rs. 1.05 crores and the same resulted in long term capital gain to the assessee. However, the assessee invested a sum of Rs. 1.78 crores on purchase of a residential apartment from M/s. Shobha Developers. The above said amount was paid in instalments beginning from 30.3.2011. The details of payment are placed at pages 35-36 of the paper book. In view of the purchase of new flat, the assessee claimed the deduction u/s 54F of the Act against long term capital gain and accordingly returned nil income under the head long term capital gain. The A.O. noticed that the assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view that the provisions of section 54F of the Act should be interpreted strictly. In this regard, he took the support of the decision rendered by Hon'ble Supreme Court in the case of Commissioner of Customs Vs. Dilip Kumar & Company (Civil Appeal No.3327 of 2007). Accordingly, he confirmed the partial disallowance of claim made u/s 54F of the Act. 4. Before us, the Ld. A.R. placed his reliance on the decision rendered by coordinate bench in the case of of Ramaiah Durai Raj 187 ITD 460 and also the decision rendered in the case of Sudheer Valsala Sreekumaran ITA 393/Bang/2019 dated 20.12.2019. The ld. A.R. submitted that the coordinate bench in the case of Ramaiah Durai Raj (supra) had placed its reliance on the decision rendered by Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted period though the assessee was failed to keep the net sale consideration in Capital Gain Scheme Account. According to him, non-depositing of fund in prescribed Capital Gain Scheme Account cannot go against the assessee when the assessee has fully utilized the net sale consideration in the construction of new residential house. The Id. AR further submitted that the investment of net sale consideration in new residential property within a period of three years from the date of sale of the property is important rather than keeping the net sale consideration in separate Capital Gain Scheme Account as notified by the Central Government. For this purpose he relied on the following judgements : 1. CIT v. K. Ramachandra Rao [2015156 taxmann.c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee is not entitled for exemption Under section 54F of the Act. 6. We have heard both the parties and perused the material on record. The main contention of the Id. DR is that the assessee has not complied with the conditions laid down u/s. 54F(1) or 54F(4) of the Act. U/s. 54F of the Act, when the assessee Invests the sale consideration from transfer either purchasing a residential house or constructing a new house within a period stipulated in Section 54F(1) of the Act, then only the assessee entitles for deduction under this section. In the intermediatery period the assessee shall deposit the amount in an account which is duly notified by the Central Government. In this case, the assessee has not deposited the net sale consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain cash but to invest in construction or any purchase of the property and if such investment is made within the period stipulated therein, then Section 54F(4) is not at all attracted and therefore the contention that the assessee has not deposited the amount in the Bank account as stipulated and therefore, he is not entitled to the benefit even though he has invested the money in construction is also not correct." 7. Being so, in our opinion, the Section 54F is beneficial provision and should be interpreted liberally and the Assessing Officer has to see the end utilization of net sale consideration in the way prescribed in Section 54F of the Act, the assessee is entitled for exemption Under Section 54F of the Act. With this observation, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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