Section 54F of Income Tax Act, 1961— Exemption u/s 54F— In the instant case, appeal is filed by assessee against the order of CIT(A).

The AO denied the benefit of section 54F on the ground that the sale deed was executed after four years nine months from the date of sale of original asset.

as per the judgment of Hon'ble Karnataka High Court rendered in the case of CIT & Another Vs. Sambandam Udaykumar as reported in [2012] 345 ITR 389 (Kar), if the assessee has invested the money for purchasing the new residential house or for constructing a new residential house then merely because the registered deed has not been executed and registered in favour of the assessee before the period stipulated, the assessee cannot be denied the benefit of section 54F of the IT Act.

Held that—Respectfully following this judgment of Hon'ble Karnataka High Court, we hold that assessee should be allowed deduction u/s. 54F to the extent of Rs. 70,84,063/- as claimed by the assessee because investment in purchase of a new residential house made by the assessee is of Rs. 1 Crore and it was made by the assessee on 30.06.2012 whereas the transfer of the original asset took placed on 19.09.2011. There is no dispute on these factual aspects because the same are noted by the AO also in para 14 of the assessment order and there is no observation of the AO that these facts are not correct. Hence we hold that deduction claimed by the assessee u/s. 54F is allowable and we delete the disallowance.[SMT. KONDAMMA VERSUS THE INCOME TAX OFFICER, WARD – 6 (2) (4) , BANGALORE.][2019] 17 ITCD Online (11) [ ITAT BANGALORE]