2008 (6) TMI 15

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.... The Judgment of the Court was delivered by  K. RAVIRAJA PANDIAN, J - 1. The relevant assessment year is 2001-2002. The assessees Shri Sardarmal Kothari and Shri Shanthilal Kothari, filed their respective return of income admitting a total income of Rs.3,02,593/- apart from the agricultural income of Rs.25,000/- each. The assessees have claimed exemption of capital gain tax under Sectio....

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.... in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the assessees are entitled for exemption under Section 54F of the Income Tax Act is valid? 2. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding, when the conditions laid down in sub clause (1) of Section 54F and the Board Ci....

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.... not been completed.  There remains some more construction to be made.  4. The requirement of the provision is that the assessee, within a period of three years after the date of transfer, has to construct a residential house in order to become eligible for exemption.  In the cases on hand, it is not in dispute that the assessees have purchased the lands by investing the capital ....

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....ar, we are of the view that the Circular would not in any way advance the case of the revenue to come to the conclusion that in order to have the benefit under Section 54F of the Income Tax Act, the construction should have been completed.  6. The Tribunal has also taken note of its own earlier order in the case of Seetha Subramanain vs. Assistant Commissioner of Income Tax reported in [19....