Rajni Kumar Vs ITO (ITAT Delhi)
ITAT Delhi held that provision of section 54F of the Income Tax Act are beneficial provision and the same has to be applied as per the peculiar situation of each case. Here, exemption u/s. 54F granted in spite of delay in construction of residential property since it was beyond the control of the assessee.
Facts- Assessee has preferred the present appeal. The relevant issues under consideration are, the assessee sold an immovable property on 18.05.2016 for a consideration of Rs.1,25,00,000/- on which long term capital gain of Rs.92,57,020/- was declared in the return of income. The assessee claimed deduction arising out of abovesaid transaction by making an investment in immovable property of Rs.1,22,57,020/- u/s 54 of the Act on account of advance made for purchase of residential plot in M/s. Chintel’s International City. Since assessee has not got the possession of the abovesaid plot, the AO rejected the claim of the assessee.
CIT (A) sustained the addition. Being aggrieved, assessee has preferred the present appeal.
Conclusion- Held that the assessee had invested all the sale consideration in purchase of the abovesaid plot and due to the reasons beyond the control of the assessee, the assessee could not commence the construction of the residential house. It is also brought to our notice that the assessee had finally gave up the rights on the abovesaid plot and purchased the residential property beyond the period of limitation. From the above facts available on record, it is beyond the control of the assessee to construct the residential property within the period allowed u/s 54F of the Act.
