TaxTMI 
TaxTMI 
2005 (9) TMI 508
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.... statutory claim of deduction under section 54F even though the capital gains was used for investment in house property as per requirement of the section. That the rejection of the claim was on technical ground even though there is no dispute about the facts that the capital gain was used for investment in property in accordance with spirit and object of the section." 3. In brief, the facts are that the assessee individual is a non-resident who filed his return of income for the assessment year under consideration declaring nil income. The return was due to be filed for the assessment year under consideration on or by 30th June, 1997 but was filed on 13-11-1998. The Assessing Officer noticed that the assessee had declared capital gain....
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....996. The date of acquisition of the new residential property was 1-12-1997, i.e., on a date falling after the due date applicable in the case of assessee for furnishing return of income in terms of sub-section (1) of section 139, i.e., 30-6-1997. Accordingly, the assessee was required in terms of section 54F(4) to deposit the net consideration in a designated account in such bank as specified in Capital Gains Accounts Scheme, 1988 before 30-6-1997. Instead, the Assessing Officer noticed that the assessee deposited the sale proceeds in a bank account maintained with State Bank of India on 3rd August, 1996. Since the Assessing Officer found that the net consideration was neither appropriated towards the purchase of residential property before....
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....ower authorities. According to the ld. counsel, the denial of exemption has been done on a mere technical lapse. The ld. counsel has justified the exemption on the ground that the sale proceeds of shares were utilized only for the purpose of investment in the new house property and not for any other purpose. In support, our reference was invited to a copy of bank account wherein the sale proceeds have been credited and the only withdrawals were for the purpose of acquisition of the said property. According to the ld. counsel, although the sale proceeds were not deposited in a bank account as specified in terms of the Capital Gains Accounts Scheme, 1988, yet they were kept in a separate bank account which were utilized only for the purpose o....
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....the assessee has earned capital gains which he has invested in the purchase of a new residential property and for such re-investment, he claimed exemption in terms of section 54F of the Act. However, the appropriation of net consideration in the house property was not made before the due date of filing of return as mentioned under section 139(1) of the Act. As a result thereof, sub-section (4) of section 54 provides that the net consideration which is not so appropriated towards the purchase of new asset, before the specified date of hearing shall be deposited in bank account which is specified in terms of the Capital Gains Accounts Scheme, 1988. The same has not been done in the present case and, therefore, it disentitles the assessee from....