- (1.) Heard Sri Siddharth Singhal, learned Counsel for the appellant and Sri Piyush Agragal, learned Counsel for the department.
(2.) This is an assessee's appeal under Section 260A of the Income Tax Act, 1961 against the order passed by the Tribunal dated 08.04.2011 whereby the Tribunal has rejected the application for exemption filed by the assessee under Section 54 F of the Income Tax Act. The questions of law sought to be answered are hereunder:- "A. Whether in the facts and circumstances of the present case the assessee will be entitled for exemption contemplated under Section 54F of the Income Tax Act where within the stipulated period the assessee has purchased plot for construction of residential house but constructions has not been completed? B. Whether phrase 'constructed residential house", inter-alia, will include investment in purchase of residential plot and investment in payment of development charges for use of plot ? C. Whether it is necessary for application of Section 54F of the Income Tax Act that constructions should be completed within the stipulated period in order to avail the benefit of exemption under the said Section ?"
(3.) The facts of the case are that the assessee was having half share in his ancestral property situated at Bodla in District Agra admeasuring 3496 Sqm. The same was sold for Rs.88.00 lacs and in the year 2005-06 the assessee invested an amount of Rs.14,10,500/- for purchasing a plot of land for construction of a residential flat from M/s. Ansal Housing and Construction Ltd., New Delhi. This inter-alia, included the amount spent by the assessee towards external development charges of Rs.68,750/-. The assessee also spent an amount of Rs.125/- for seeking sanction of map for construction of the house from Agra Development Authority. The assessee, therefore, claimed for exemption, inter-alia, under Section 54F of the Income Tax Act as according to the assessee the capital gains from the sale of the ancestral land and due investment of the same for constructions of residential house is entitled for exemption under the said section. Accordingly, the assessee claimed deduction under the said section during the Assessment Year 2006-07.;