2019 (1) TMI 1202 - AT - Income Tax

Tribunal dismisses appeal due to failure to comply with Income-tax Act provisions

The appeal was dismissed by the Tribunal based on the assessee's admission regarding the lower cost of acquisition of the property as on 01.04.1981. ... Computation of capital gain - cost of acquisition of the property as on 01.04.1981 - Held that:- The assessee had filed original return of income of income on 30.07.2013 declaring income at ₹ 2,42,617/-. For the year under consideration, the assessee had sold his land at Balewadi, Tal. Haveli, Pune Dist. on 27.09.2012. The assessee had shown the cost of acquisition of the said property as on 01.04.1981 at ₹ 3,59,648/-, whereas the Assessing Officer had adopted at ₹ 10,360/-. The perusal of assessment order reflects that the assessee had admitted before the Assessing Officer to adopt the cost of acquisition at ₹ 10,360/-. In view of the admission of assessee, there is no merit in the ground of appeal raised by assessee in this regard. Hence, the same is dismissed. Claim of deduction u/s 54F - non deposit to an account of specified bank or institution - Held that:- The assessee is not entitled to the claim of deduction under section 54F of the Act as the assessee has failed to deposit the unutilized amount of capital gains in the capital gains scheme account by the date of filing of return of income. - Decided against assessee. Issues Involved:1. Cost of acquisition of the property as on 01.04.1981.2. Deduction claimed under section 54F of the Income-tax Act.Issue 1: Cost of Acquisition of the Property as on 01.04.1981:The appeal concerns the cost of acquisition of a property as on 01.04.1981. The assessee claimed the cost at Rs. 3,59,648/-, while the Assessing Officer adopted it at Rs. 10,360/-. The assessment order revealed that the assessee admitted to adopting the lower cost of acquisition. Consequently, the appeal on this ground was dismissed due to the assessee's admission.Issue 2: Deduction Claimed under Section 54F of the Income-tax Act:Regarding the deduction claimed under section 54F of the Act, the assessee purchased a new residential property jointly with his wife. The total consideration was Rs. 53,85,000/-, with a portion claimed as deduction under section 54 and the remaining under section 54F. The Assessing Officer disallowed a part of the claim based on the provisions of section 54F(1)(b) and 54F(4) of the Act. The assessee failed to deposit the unutilized amount of capital gains in the capital gains scheme account by the due date of filing the return of income. Citing the Hon'ble Bombay High Court's decision in a similar case, the Tribunal held that the assessee was not entitled to the deduction under section 54F. The issue was dismissed based on the settled position by the Jurisdictional High Court and the Tribunal's previous rulings.In conclusion, the judgment addressed two main issues: the cost of acquisition of the property and the deduction claimed under section 54F of the Income-tax Act. The decision was made based on the specific facts and legal provisions applicable to each issue. The Tribunal's ruling was guided by precedents and legal interpretations, resulting in the dismissal of the appeal by the assessee.