TaxTMI 
TaxTMI 
One of my assessee has sold his property on 21.03.2007 and we arrived long-term capital gain amount Rs. 92,67,000/-. But the assessee has filed his return of income on 29.07.2008 and not made any deposit into Capital Gain Account. Also he has purchased new assets of one residential property on 24.08.2007 for Rs. 39,00,000/-, for that, he has executed sale agreement on 20.04.2007 without made any advance amount. In this circumstance, we have claimed exemption u/s. 54 F for Rs. 39,00,000/- as the assessee invested the amount within six month from the date of Transfer. But, the Income Tax Officer has disallowed this and demanded the tax. Now we want justification with case law reference.
Disallowance of exemption u/s. 54 F
04 Jan 2010 
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Capital gains exemption under section 54F hinges on deposit or committed investment before the return due date.
Exemption under section 54F was denied because the assessee filed the return late and did not deposit proceeds into a Capital Gain Account by the six month deadline; however, if the purchase funds were actually paid or irrevocably committed before the return due date, a Capital Gain Account deposit may be unnecessary and the exemption may be allowable on proof of such commitment. (AI Summary)
Exemption under section 54F was denied because the assessee filed the return late and did not deposit proceeds into a Capital Gain Account by the six month deadline; however, if the purchase funds were actually paid or irrevocably committed before the return due date, a Capital Gain Account deposit may be unnecessary and the exemption may be allowable on proof of such commitment. (AI Summary)