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| The Tax Publishers2019 TaxPub(DT) 3066 (Ahd-Trib) INCOME TAX ACT, 1961
Section 54F
Where assessee did not deposit sale consideration in the bank account maintained under the capital gains scheme before the due date of filing of return but otherwise purchased new house within two years, as stipulated in section 54F(1), then deduction under section 54F could not be denied to assessee.
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Capital gains - Deduction under section 54F - Non-deposit of sale consideration in bank account maintained under capital gain scheme before due date of return filing - New house purchased within prescribed period
The case of assessee was that she has made investment in purchase of a new flat and utilised the total capital gain by investing the amount more than the sale consideration, therefore, no capital gain was taxable in her hands in terms of section 54F(1). AO alleged that since assessee had not deposited the sale consideration in a bank account maintained under the capital gains scheme before the due date of filing of return under section 139(1), therefore, she could not claim exemption as contemplated under section 54F(4). Held: Assessee did not deposit the sale consideration in the bank account before the due date of filing of return. But otherwise purchase of house was within two years, as stipulated in section 54F(1). It was not the case of assessee that she has purchased beyond the period as contemplated in section 54F(1). The only failure was that she had not deposited the sale consideration in capital account, which is not a mandatory condition to claim deduction under section 54F.
Followed:CIT v. K. Ramachandra Rao [IT Appeal Nos. 494 & 495 of 2013 & 46 & 47 of 2014, dt. 14-7-2014] : 2015 TaxPub(DT) 1933 (Karn-HC), Ashok Kapasiawala v. ITO (2015) 63 taxamnn.com 284 (Ahd)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
N THE ITAT, AHMEDABAD BENCH
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