Raghav Kapoor Chand Gupta,Kanpur vs Dy. Cit, Circle-4, Kanpur on 28 April, 2026
On a query from the Bench, the
ld. AR admitted that it had not been possible for the assessee to subsequently
complete the construction of the said house property on account of order of
the Hon. Supreme Court, that had stopped construction at Aamby Valley, but
he drew our attention to the decision of the ITAT Chandigarh Bench in the
case of Shri Pradeep Kumar Jain vs. ITO-2(3), Chandigarh in ITA No.
190/CHD/2019 wherein vide their order dated 21.12.2019, where the
assessee could not proceed with construction activity on a residential plot
because the Government of Punjab through a notification had banned the
construction activity in Village Kansal in the month of May, 2017, ITAT held
that the assessee was prevented from constructing the residential house over
the said plot for the reasons beyond his control. Under the circumstances, it
could not be considered to be a case where the assessee had failed to
construct the house/residence within a period of three years from the date of
10
ITA No.360/LKW/2023
A.Y. 2013-14
Raghav Kapoor Chand Gupta
sale of his property. Rather the assessee had proceeded to purchase a plot and
begin construction of residential house however, was prevented due to ban
on construction by the Government which was a subsequent event. Hence, the
non-construction of house over the said plots was due to reasons beyond the
control of the assessee and therefore, considering the exceptional facts and
circumstances of the case, it could not be said that there was default on the
part of the assessee for not complying with the provisions of section 54 of the
Act. Under the circumstances, the denial of deduction under section 54 was
not justified and the ld. AR prayed that his case being similar, the assessee
should be granted the benefit of deduction as he had substantially complied
with the provisions of section 54.