Tribunal affirms deduction under section 54F for pre-filing investments

The Tribunal dismissed the Revenue's appeals, affirming the CIT(A)'s decision to allow the deduction under section 54F based on investments made before the due date of filing the return. The Tribunal emphasized that investments made before the filing date qualify for the deduction and directed the Assessing Officer to verify and allow the deduction accordingly. Previous judgments were cited to support the decision, and the Tribunal upheld the CIT(A)'s order regarding the timing of investments and eligibility for exemption under section 54F.

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Issues Involved:
The judgment involves appeals filed by the Revenue against separate orders of the CIT(A)-VI, Chennai, regarding eligibility for exemption u/s 54F and the timing of investment in a capital gains scheme.

Eligibility for Exemption u/s 54F:
The assessee claimed exemption u/s 54F for investing in a new asset after the due date of filing the return u/s 139(1) of the Act. The Assessing Officer disallowed the claim based on the requirement to deposit the net consideration in a Capital Gains Account Scheme by the due date for filing the return. The CIT(A) allowed the appeal, citing precedents and holding that investment made before the due date of filing the return qualifies for deduction u/s 54F.

Timing of Investment in Capital Gains Scheme:
The Assessing Officer restricted the deduction u/s 54F based on the amount invested before the due date of filing the return. The assessee argued for the full deduction based on investments made before the due date. The CIT(A) allowed the claim, following the decision of the Tribunal and holding that the investment made before the due date of filing the return qualifies for deduction u/s 54F.

The Tribunal upheld the CIT(A)'s decision, emphasizing that the investment made before the due date of filing the return qualifies for deduction u/s 54F. The Tribunal referred to previous judgments and directed the Assessing Officer to verify the amount invested before the filing date and allow deduction accordingly. The Tribunal dismissed the Revenue's appeals, confirming the CIT(A)'s order based on the timing of investments and eligibility for exemption u/s 54F.

In conclusion, the Tribunal dismissed the Revenue's appeals, confirming the CIT(A)'s decision to allow the deduction u/s 54F based on investments made before the due date of filing the return.

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