1990 (2) TMI 132

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....15-12-1978 for Rs. 26.945 4-3-1978 for Rs.30.656 8-3-1978 for Rs. 20.448 Rs. 78,049 The assessee made a fixed deposit with the State Bank of India, Tuticorin on 9th March, 1978 vide F.D. No. 653499 of Rs. 1 lakh. Thus, more than the full consideration received was placed in a fixed deposit. 3. In the return filed, capital gains were neither shown nor any capital gain was brought to tax in the assessment for the year 1978-79. 4. In the next year, in the statement filed, the assessee had stated that a loan had been availed of against the fixed deposit. The ITO took the view that the assessee forfeited the exemption from capital gains and what is more, the non-furnishing of particulars in the asst. yr. 1978-79 was wanton and merited i....

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.... April, 1978. In the present case, the deposit was made on 9th March, 1978 and the assessee's case goes outside the purview of the Explanation. The exemption granted could have been withdrawn in terms of s. 54E(2) only "where the new asset is transferred, or converted (otherwise than by transfer) into money, with in a period of three years from the date of its acquisition, the amount of capital gains arising from the transfer of the original asset not charged under s. 45 on the basis of the cost of such new asset as provided in cl.(a) or, as the case may be, cl.(b), of sub-s. (1) shall be deemed to be income chargeable under the head "Capital gains" relating to capital assets other than short-term capital assets of the previous year in whic....