Case Law Details
Satyavati Arvind Kotian Vs ITO (ITAT Mumbai)
ITAT held that amount invested in property as well as kept in bank account even though not in the capital gain tax account should be allowed as exemption deduction u/s.54F. Merely not keeping the amount in capital gain tax and keeping the same in the bank account and utilizing the same within the statuary period will not disentitle the assessee for claim of deduction u/s.54F. In the instant case before me, I found that assessee has already paid Rs.1 1.43 lakhs for booking of the flat and the remaining payment was made when the builder has got clearance from the competent authority. Accordingly there is no reason to disallow Rs.11.43 lakhs paid by assessee towards booking of flat. Accordingly, AO is directed to allow the same as exempt u/s.54F.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This is an appeal filed by the assessee against the order of CIT(A)-46, Mumbai dated 20/01/2017 for A.Y.2011-12 in the matter of order passed u/s.143(3) of the IT Act wherein following grounds have been taken by the assessee:-
1-The Ld. C.I.T., (Appeals), Mumbai erred while not allowing the benefit of Rs. 22,65,274.00 which too was paid by the appellant.
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