TaxTMI 
TaxTMI 
2014 (1) TMI 1362
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....sessee. 1. The Ld. CITCA) and the Ld. A.O. erred in rejecting the claim of exemption of the appellant on account of full utilization of the investible Funds in Residential Flat by his commitment made with the Builder. 2. The Ld. CITCA) and the Ld. A.O. erred in not granting the Full Relief of Investment commitment made by the Appellant before the Filling of the Return. 3. The Ld. CITCA) and the Ld. A.O. erred in not appreciating that the commitment of Full Price as agreed by the Builder is an important aspect of Purchase of Flat under Construction. 4. The Ld. CITCA) was not justified in Disallowing the Exemption on the basis of Decision in the case of Taranbir Singh Sawhney, which is distinguishable on Facts. 5. The Ld. CITCA....
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....r got cancelled and the assessee pursued for refund of the amount invested. After hectic efforts, the assessee received back his money from Sunshine Housing Development Ltd. in the year 2008 and 2009 in the following manner:- Date Bank Cheque no. Amount 02.07.2008 Bank of India 476971 2,25,00,000 09.07.2008 Bank of India 899421 1,25,00,000 10.09.2008 Bank of India 329859 1,00,00,000 15.04.2009 Bank of India 000019 1,50,00,000 12.06.2009 Bank of India 795512 1,00,00,000 Total 7,00,00,000 4. Out of the aforesaid sum received, particularly the amount received in the year 2008 for sums aggregating to Rs. 4.50 crores, the assessee offered for tax....
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....has invested the amount within the stipulated period of section 54(1) and has finally taken the possession of the newly residential flat. On these facts, reliance was placed on the decision of the Tribunal, Guwahati Bench, in Rajesh Kumar Jalan v/s ITO, [2004] 86 TTJ 955 (Gua.) and Jodhpur Bench decision of the Tribunal in Rajesh Kumar Jain v/s ITO, [2004] 86 TTJ 170 (Jodh.). The learned Commissioner (Appeals), after distinguishing the said judgments, upheld the contention of the Assessing Officer and after following the decision of Delhi Bench of the Tribunal in Taranbir Singh Sawhney v/s DCIT, [2006] 5 SOT 417 (Del.), upheld the disallowance made by the Assessing Officer. 7. Before us, the learned Counsel, after reiterating the facts, ....
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....lear mandate of the law that, if the assessee has not appropriated the net consideration for purchase of new asset before the date of furnishing of return of income under section 139, then the assessee has to deposit the same under specified capital gain account scheme. Thus, the disallowance of deduction for such amount of Rs. 61,36,300 is to be confirmed. 9. We have heard the rival contentions, perused the findings of the authorities below as well as the material available on record. The assessee has received sale consideration on the transfer of long term capital asset i.e., sale of shares on 14th May 2008. Immediately after receiving the said money that is on 16th May 2008, the assessee had invested the whole of the sale proceeds in ....
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....re incurred on stamp duty and other incidental expenses were as under:- Date Particulars Cheque no. Amount 17.03.2011 Stamp Duty 283255 6,84,308 17.03.2011 Registration 283256 30,105 25.03.2011 Service Tax 52,739 25.03.2011 VAT 1,55,822 11.01.2012 Development 283284 4,65,000 Charges Civil Work as per Architect's invoice 10,11,700 Brokerage 2,80,000 TOTAL: 26,79,674 10. Provisions of sub-section (1) of section 54F provides that, the capital gain arising out of transfer of any long term capital asset, the assessee has to either purchase the residential house within a period of two years or has to construct a residential house within a period of three years from the date when the transfe....
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....ew asset before the date of furnishing of return of income under section 139, he is required to deposit the said amount in the specified capital gain account scheme. This provision is only to ensure that the assessee does not misuse the exemption provided in section 54. This sub-section cannot be inferred to deny the otherwise legitimate claim of exemption provided under section 54(1). If the conditions required under section 54(1) are not fulfilled, then sub-section (4) of section 54 provides mechanism to avail the benefit by depositing the money in the specific capital account scheme within a stipulated time. In this case, only condition which has to be seen is, whether the assessee got the constructed flat within the period of three year....