2016 (7) TMI 538

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the Act"). 2. The only issue in this appeal of the assessee is against the order of the CIT (A) confirming the action of the AO in disallowing the claim of deduction u/s 54F of the Act. For this, the assessee has raised the following two grounds:- "(1) The learned Commissioner of Income-tax (Appeals)- 27, committed a gross error of law and facts in rejecting the claim of deduction u/s. 54F of the Income-tax Act, 1961 made by the appellant for purchasing a residential house under construction against the sale of land. (2) He failed to appreciate the facts that the appellant complied with all the requirements of provisions of section 54F and made full investment within the prescribed time". 3. Briefly stated facts of t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....h the facts and circumstances of the case. The admitted facts under consideration are that the assessee sold a plot of land at Rajkot, Gujarat for a consideration of Rs. 19,35,325/- on 09-02-2010. The assessee has earned Long Term Capital Gains of Rs. 14,81,284/-. The assessee invested a sum of Rs. 15,00,000/- on 12-03-2010 and Rs. 3,60,000/- on 19-03- 2010 for buying a residential flat under construction in the project "LA - CITADEL" from Seth Developers Pvt. Ltd. and Poonam Builders. The Developer allotted Flat No.602 of 6th Floor in the project for a sum of Rs. 1,43,96,800/- on the terms & conditions given in the letter of allotment issued to him by the Builder dated 16-03- 2010. Copy of the allotment letter is enclosed in assessee's pap....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Court"; In view of the above, the learned Counsel for the assessee stated that the suit filed by the assessee and others against the Developer/Builder is enough evidence that the assessee could not get the flat completed or registered in his name due to impossibility and acts of other parties. The learned Counsel for the assessee also explained that he has fulfilled the conditions laid down u/s 54F of the Act by investing a sum of Rs. 18,60,000/- in the above flat within the stipulated period in a residential house property under construction. We find that so far as the facts in question are not disputed, the only issue is that when the assessee is not able to get the title of the flat registered in his name or unable to get the possess....