TaxTMI 
TaxTMI 
TaxTMI 
2015 (3) TMI 641
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....he Act') by recording reasons for the same and thereafter issued notice under Section 148 of the Act dt.21.12.2011 to the assessee requiring him to file his return of income. In response thereto, the assessee filed his return of income on 12.1.2012 declaring total income of Rs. 4,90,220 comprising, inter alia, of salary from BAeHAL Software Ltd. and HCL Technologies where he was employed during the year under consideration. 2.1.2 In the course of assessment proceedings, the Assessing Officer noticed that there was a credit of Rs. 1,25,00,000 on 18.1.2008 in the assessee's bank account with Bank of India. On being queried in regard to the same, the assessee explained that this amount was the amount received in lieu of relinquishment of right in property w.r.t. the Memorandum of Agreement between the assessee along with three other persons to M/s. Kristal Projects (India) Ltd., Bangalore. Examination of the Memorandum of Agreement dt.12.12.2007 with Kristal Projects (India) Ltd. showed that the assessee along with three other persons viz. Smt. Savithramma, Smt. H.R. Mala, Sri R. Lokesh have agreed to relinquish their respective rights in 50% share in the property at Survey N....
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....the assessee the commencement of construction of the new property was from 1.5.2009, which is after the due date for filing the return of income u/s. 139(1) of the Act for Assessment Year 2008-09 i.e. 31.7.2008, the assessee ought to have, but failed to invest the unutilized portion of the capital gains in a Capital Gains Account Scheme, of the Government. The assessment was accordingly completed under Section 143(3) r.w.s. 147 of the Act vide order dt.27.2.2013, wherein the income of the assessee was determined at Rs. 75,33,100 as against the returned income of Rs. 4,90,220 in view of, inter alia, the assessee's claim for exemption of Rs. 70,16,326 under Section 54 / 54F of the Act being rejected. 3. Aggrieved by the order of assessment for Assessment Year 2008-09 dt.27.2.2013, the assessee preferred an appeal before the learned CIT (Appeals), Mysore challenging the Assessing Officer's action in denying the assessee's claim for exemption under Section 54 / 54F of the Act amounting to Rs. 70,16,326. The learned CIT (Appeals) disposed of the appeal vide the impugned order dt.13.9.2013 allowing the assessee relief in respect of its claim for exemption under Section 54F of th....
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.... same has to be followed strictly. The failure to comply with the same would not entitle the assessee to claim exemption. Such compliance is mandated by the provisions and a substantial question of law would arise. 9. It is very clear from a plain reading of section 54(2) of the IT Act 1961 that the deposit in Capital Gain Scheme should be made in any case not later than the due date applicable in the case of the assessee for furnishing of the return of income under sub-section (1) of section 139. 10. Hence the decision of CIT (Appeals) to consider the last date of filing of return of income under Section 139(4) is opposed to law. 11. On these and any other grounds that may be urged at the time of hearing, the Hon'ble ITAT is pleaded to quash the order of CIT (Appeals)." 5. The assessee has also filed Cross Objections (C.O.) which are as under :- "1. The CIT (Appeals)'s order in ITA No.383/12-13 dated 13.9.2013, holding that the long term capital gains of Rs. 70,16,326 arising out of gross consideration of Rs. 1,25,00,000 should be exempt under Section 54F of the Act, since the Respondent had invested a sum of Rs. 1,28,62,774 in construction of residential flats upto 31.3.....
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....ecting the assessee's claim for exemption under Section 54F of the Act, be restored. 6.2 Per contra, the learned Authorised Representative strongly supported the impugned order of the learned CIT (Appeals) in allowing the assessee's claim for exemption under Section 54F of the Act and in this regard following the binding decisions of the Hon'ble High Court of Karnataka in the case of Fatima Bai (supra) and of the co-ordinate bench of the Tribunal in the case of Nipun Mehrotra (supra). The learned Authorised Representative reiterated the submissions put forth before the learned CIT (Appeals). It is submitted by the learned Authorised Representative that the assessee continues to claim there is no transfer or sale on the period relevant to Assessment Year 2008-09 for levy of capital gains as the transfer / sale was concluded on 30.1.1997, by virtue of the order of the XV Addl. City Civil Judge in O.S. No.3486/1995 r.w. Execution Case No.803/1996. The learned Authorised Representative further submits that if, as held by the authorities below, the transfer has taken place by virtue of the Memorandum of Agreement dt.12.12.2007, when the assessee relinquished its right in re....
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....ration is exigible to tax as capital gains in the year under consideration i.e. Assessment Year 2008-09. In this regard, the assessee computed the LTCG on transfer of his share of the said property at Rs. 70,16,326 and claimed that the entire capital gains was exempt under Section 54 / 54F of the Act. It was submitted by the assessee that the consideration received was invested in the purchase of a site on 3.4.2008 for Rs. 52,08,174 and the balance was invested in the cost of construction incurred in putting up the new residential property thereon between 1.5.2009 and 31.3.2010. The details of the investments made out of the sale consideration of Rs. 1.25 Crores is computed as under by the assessee :- 1) Purchase of site on 3.4.2008 Rs.52,08,164 2) Building Construction commenced from 1.5.2009 to 31.3.2010 a) Ground Floor Rs.25,87,500 b) First Floor. Rs.24,79,000 c) Second Floor Rs.25,87,500 Total Investment Upto 31.3.2010 : Rs.1,28,62,774. 6.5.2 The assessee's contention is that since the concerned assessment year was 2008-09, the time limit to utilize the capital gains for making the deposit or to invest the capital gains in the constructio....