|The Tax Publishers2020 TaxPub(DT) 5407 (Bang-Trib) : (2021) 187 ITD 0460
INCOME TAX ACT 1961
Even though assessee had not deposited the net sale consideration in the Capital Gains Account Scheme notified by the Central Government, but within stipulated time, had utilized the net sale consideration as enumerated in the section 54F(1), benefit of exemption claimed under section 54F could not be denied.
Capital gains - Deduction under section 54F - Non-deposit of sale consideration in Capital Gains Account Scheme - Utilization of consideration as enumerated in section 54F(1)
Assessee claimed deduction under section 54F. The said claim was denied by AO on the reason that the assessee had not deposited the net sale consideration in Capital Gains Account Scheme which is a clear violation of provisions of section 54F(4). Held: Tribunal relying on K. Ramachandra Rao (2015) 277 CTR (Karn) 522 : (2015) 56 taxmann.com 163 (Karn-HC) : 2015 TaxPub(DT) 1933 (Karn-HC) observed that if assessee want to claim exemption from payment of income-tax by retaining the cash, then the said amount is to be invested in capital gains account scheme. If the intention was not to retain cash but to invest in construction or any purchase of the property and if such investment was made within the period stipulated therein, then section 54F(4) was not at all attracted and therefore, the contention that the assessee had not deposited the amount in the bank account as stipulated and therefore, was not entitled to the benefit, even though he had invested the money in construction was also not correct. Section 54F is beneficial provision and should be interpreted liberally and AO has to see the end-utilization of net sale consideration in the way prescribed in section 54F, the assessee is entitled for exemption under section 54F.
Followed:K. Ramachandra Rao (2015) 277 CTR (Karn) 522 : 2015 Taxpub(DT) 1933 (Karn-HC)
FAVOUR : In assessee's favour.
A.Y. : 2013-14
IN THE ITAT, BANGALORE BENCH
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