2022 (4) TMI 1128

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....Tax Act, 1961 (the Act) concerning AY. 2010-11. 2. The grounds of appeal raised by assessee read as under: "1 The first ground of appeal is disallowance of exemption u/s. 54F of Rs. 39,95,263/- claimed on long term capital gains on sale of residential property. Learned DCIT as well as Ld. CIT(Appeals) has erred on the facts of the case and disallowed exemption of Rs. 3995263/- claimed u/s 54F on long term capital gains on sale of residential property on date 27/10/2009, though same long term capital gains are invested for purchase of Residential Property Plot on date 21/07/2009. All details for purchase & sale of properties & its sources, purchase & sale deeds of properties & working of long term capital gains & exemption from long ter....

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....hin a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, one residential house in India, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say,- (i) if the amount of the capital gain is greater than the cost of the residential house so purchased or constructed (hereafter in this section referred to as the new asset), the difference between the amount of the capital gain and the cost of the new asset shall be charged under section 45 as the income of the prev....

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....rchase of the new asset made within one year before the date on which the transfer of the original asset took place, or which is not utilised by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied ....

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....n Fastners and deposits were used for business purpose. But, learned AO disallowed the claim of the assessee on the ground that the assessee has unsecured loans were used for business purposes not for the purchase of the land, hence disallowed interest expenses. 5. Thereafter, the assessee preferred first statutory appeal before the learned CIT(A) who had confirmed the order of the learned AO on the ground that assessee purchased the plot of land for constructing house on 21.07.2009 and started the construction on 04.12.2007. As per assessee, he spent Rs. 66,67,010/- upto 26.10.2012 on construction of the house. But, he did not file any evidence of undertaking the construction on the said plot. Though, the assessee filed copy of 'House Pur....