Pravin Ashumal Keshwani Vs DCIT (ITAT Ahmedabad)
Material Facts: The assessee sold a property on 19.07.2021 and had purchased a plot on 18.03.2021. After the sale, the assessee constructed a residential house on the plot and claimed deduction under Section 54F. The Assessing Officer denied the deduction on the ground that the plot had been purchased more than one year before the transfer of the capital asset.
Procedural History: The CIT(A) held that there was no bar on constructing a house on a plot purchased before one year from the transfer of the capital asset but sustained the disallowance on the ground that no completion certificate had been furnished to establish completion of construction within three years.
Tribunal’s Findings: The Tribunal noted that the assessee had produced ledger accounts, bills and invoices evidencing expenditure on construction. It observed that the Assessing Officer had not disputed that the residential house had been constructed within three years. The Tribunal further held that Section 54F does not require furnishing of a completion certificate. Where convincing evidence establishes construction of a residential house within the prescribed period, deduction under Section 54F cannot be denied on the technical ground of absence of a completion certificate.
