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TMI Blog2024 (3) TMI 660X X X X Extracts X X X X X X X X Extracts X X X X ..... rities has considered these dates as the relevant dates to examine the claim of the assessee overlooking the fact that the construction agreement had stipulations that the construction would be completed in 18 months from the date when the builder gets approval. The payment towards construction has been made between 01-06-2011 to 14-06-2013 and the possession has been obtained on 05-02-2013. All these events are within the stipulated period of one year prior and two years thereafter as counted from 24-02-2012. In our opinion, there is no requirement that specific money as deposited in capital gain account scheme should be utilized towards new investment. The assessee may make investment from other funds as available with him and the same wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in capital gain deposit scheme was not invested in purchase or construction of any property within the stipulated time period as per sub-section (1) of Sec.54F of the Act. 3. The CIT(A) failed to understand that Sec.54F does not mandate that the very sum deposited in capital gains account should be invested in purchase or construction of any property within the stipulated time. All that Sec.54F stipulates is that the assessee should purchase or construct a residential property within the stipulated time and does not contain any mandate with regard to the source from which such purchase or construction should be made. 4. The CIT(A) erred in confirming the disallowance u/s. 54F on the ground that the appellant had entered into a constructi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it emerges that the assessee sold certain plot during February, 2012 and the sale proceeds thereof were invested in capital gain scheme. It also transpired that the assessee purchased another plot at VGP Selvanagar, Velachery Village on 27-02-2014. As per requirements of Sec.54F, the construction of new plot should have been completed within 3 years of sale of the original asset. However, in the Balance Sheet as on 31-03-2015, the plot at Selvanagar was still shown as plot. Therefore, it was concluded that the nature and value of the asset had not changed and the construction of the plot was not completed within stipulated time period. Considering the same, entire capital gain of Rs. 56.36 Lacs was to brought to tax in this year. Forming ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pulated period of 18 month for completion of construction from the date on which the builders get approval. Further, the payment for construction for Rs. 81.84 Lacs was made between 01-06-2011 to 14-06-2013 which was evident from the receipts issued by the builder. The possession of the flat was taken on 05-02-2013 which was well within the stipulated period of three years. Accordingly, the assessee laid its claim towards deduction u/s 54F. 6. However, Ld. CIT(A), upon perusal of capital gain bank passbook, observed that the amount of Rs. 75 Lacs was withdrawn only on 27-02- 2014 and 28-02-2014 and this particular money was not utilized for purchase or construction of a new house. Concurring with the observation of Ld. AO that the purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X
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