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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 ..... l house, other than the new asset, within a period of three years after the date of transfer of the original 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 ₹ 2.24 crores and odd in the construction of house within a period of three years, which construction was incomple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption u/s 54F amounting to ₹ 3,01,10,936 on the ground that she invested a total sum of ₹ 3,24,39,500 by depositing ₹ 1 crore in Capital gain scheme account and investing ₹ 2,24,39,500 in purchase of residential land at A-36, Puru Society, Lohegaon, Pune for construction of house. The AO observed that the assessee had started construction of a bungalow at plot No.A-36, Puru Society, Lohegaon, Pune for claiming exemption u/s 54F. However, the construction of said bungalow was not complete on the date of assessment. In order to ascertain the stage of completion/construction of house of the assessee, an Inspector of Income Tax was deputed to find out the facts by way of a site visit. Certain photographs have been re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars 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 following provisions of this section, that is to say,- (a) if the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45 ; (b) if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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