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TMI Blog2022 (4) TMI 1128X X X X Extracts X X X X X X X X Extracts X X X X ..... nd other relevant documents before us by way of a paper book stating that these documents are vital for disposing of appeal of the assessee. As claim of the assessee has been rejected by the lower authorities for the ground that assessee has not started building construction activity within three years. The benefit of Section 54F of the Act cannot be given. As the assessee could not file all the relevant details before the lower authorities at our direction assessee could file certain directions which are important for adjudication of the case. In our considered opinion and in the interest of justice, we give one more chance to the assessee and set aside the matter back to the file of the AO with the direction to go through the paper book f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gains on sale of residential property. Learned DCIT as well as Ld. CIT(Appeals) has erred on the facts of the case and disallowed exemption of ₹ 3995263/- claimed u/s 54F on long term capital gains on sale of residential property on date 27/10/2009, though same long term capital gains are invested for purchase of Residential Property Plot on date 21/07/2009. All details for purchase sale of properties its sources, purchase sale deeds of properties working of long term capital gains exemption from long term capital gains were well explained during course of assessment proceedings. 2 The Second ground of appeal is disallowance of interest expense of ₹ 3,15,247/- Learned DCIT as well as Ld. CIT(App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in India, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say,- (i) if the amount of the capital gain is greater than the cost of the residential house so purchased or constructed (hereafter in this section referred to as the new asset), the difference between the amount of the capital gain and the cost of the new asset shall be charged under section 45 as the income of the previous year; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase or construction, as the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstruction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cured loans were used for business purposes not for the purchase of the land, hence disallowed interest expenses. 5. Thereafter, the assessee preferred first statutory appeal before the learned CIT(A) who had confirmed the order of the learned AO on the ground that assessee purchased the plot of land for constructing house on 21.07.2009 and started the construction on 04.12.2007. As per assessee, he spent ₹ 66,67,010/- upto 26.10.2012 on construction of the house. But, he did not file any evidence of undertaking the construction on the said plot. Though, the assessee filed copy of House Purchase Account in the books and there were some entries in the account regarding purchase and construction material but not supporting document ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, we give one more chance to the assessee and set aside the matter back to the file of the AO with the direction to go through the paper book filed by the assessee before us and thereafter decide the matter as per law. 9. In the result, this ground of appeal is allowed for statistical purposes. 10. Now, we come to Ground No.2, in this case assessee has taken loan for business purpose as interest of ₹ 3,15,247/- has been paid on unsecured loans in a proprietary firm of the assessee. Since, the amount has not been used for construction of house, therefore, same cannot be allowed and we do not find any infirmity in the order passed by the lower authorities and therefore, we confirm the action of the lower authorities. 11. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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