Tribunal Orders Deduction under Section 54F for Assessee

The appeal was allowed, and the order was pronounced on 24th March 2023 at Chennai. The Tribunal directed the Assessing Officer to allow the deduction under section 54F to the assessee, as the conditions under section 54F were fulfilled by the assessee in purchasing the property.

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Issues involved: Delay in filing appeal, denial of deduction under section 54F of the Income Tax Act.

Issue 1: Delay in filing appeal

The appeal was delayed by 91 days, and the assessee filed a petition for condonation of the delay, which was accepted as the assessee was prevented by sufficient cause. The delay was condoned, and the appeal was admitted for adjudication.

Issue 2: Denial of deduction under section 54F

The assessee claimed deduction under section 54F for a property purchased for Rs. 2,00,00,000. However, the Assessing Officer denied the claim citing non-fulfillment of the procedural requirement of depositing sale proceeds into the capital gain account scheme before the due date of furnishing the return. The CIT(A) confirmed the disallowance.

Judgment:

The Tribunal considered the case and observed a similar issue in a previous judgment where the assessee had complied with the conditions for availing the benefit of exemption under section 54F. In the present case, the assessee had purchased an independent house for Rs. 2 crores, paying an advance and the remaining amount on the date of registration, fulfilling the conditions under section 54F. The Tribunal, following the decision of the High Court, set aside the CIT(A)'s order and directed the Assessing Officer to allow the deduction under section 54F to the assessee.

Conclusion:

The appeal filed by the assessee was allowed, and the order was pronounced on 24th March 2023 at Chennai.

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