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TMI Blog2021 (8) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case are that the assessee has been engaged as a Builder. She developed a project, namely, 'Solitaire', situated at Sr. No.17, Dhanori, Pune. The land for the same was purchased on 10.06.1985. The assessee sold 1/4th of the land on 25.03.2011 for a sum of Rs. 2.7 crores and decided to develop the remaining 3/4th land herself by converting the same into stock in trade. The assessee declared, inter alia, long term capital gain on sale of flats of the said project. She claimed exemption u/s 54F amounting to Rs. 3,01,10,936 on the ground that she invested a total sum of Rs. 3,24,39,500 by depositing Rs. 1 crore in Capital gain scheme account and investing Rs. 2,24,39,500 in purchase of residential land at A-36, Puru Society, Lohegaon, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emption u/s 54F of the Act. The relevant part of section 54F in this regard reads as under: "54F. (1) Subject to the provisions of sub-section (4), where, in the case of an assessee being an individual or a Hindu undivided family, the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, one residential house in India (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal asset. So the emphasis in the provision is on constructing. Nowhere does the provision lay down a stipulation of completion of construction as a condition precedent for claiming the exemption. Once the construction has been started and the requisite amount has been invested in the same, the requirement of section 54F gets fulfilled notwithstanding the fact that the construction does not get completed within the given period of three years. On the facts of extant case, it is amply clear that the assessee invested Rs. 2.24 crores and odd in the construction of house within a period of three years, which construction was incomplete at the end of the stipulated period, but got actually completed at a later stage as has been recorded by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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