Section
54F does not put any restriction on source of investment in new asset.
Therefore, exemption couldn’t be denied on ground that investment was made out
of loan and not from sale consideration received on transfer of original
capital asset.
Issue
Whether it is mandatory
for availing of benefit of section 54F that investment in new asset should be
entirely sourced from capital gain?
The
Punjab and Haryana High Court held as under-
1) Section
54F nowhere envisages that sale consideration obtained by assessee from
original capital asset is mandatorily required to be utilized for purposes of
meeting cost of new asset.
2) Therefore,
where investment made by assessee, although not entirely sourced from capital
gain, but was within stipulated time and more than capital gain earned by him,
assessee was entitled to exemption under section 54F- [2016] 66 taxmann.com 191
(Punjab & Haryana)
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