TaxTMI 
TaxTMI 
TaxTMI 
2016 (5) TMI 1100
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....one the delay and admit the appeal. 3. The Brief facts of the case that the assessee is an individual having income from salary, income from house property and interest income and filed return of income on 17.03.2006 with total income of Rs. 5,28,430/-. The assessee made investments during the financial year and notice was issued u/s.148 of the Act and assessment was completed on 04.12.2009 determining total income at Rs. 9,65,440/-. Subsequently, the Assessing Officer found that assessee has sold shares of CTL amounting to Rs. 81,63,440/- and claimed exemption u/s.54EC and Rs. 10,00,000/- by investing in NABARD bonds and for balance claimed exemption u/s.54F by utilizing the funds in the construction of flat in Bangalore. The ld.Assessing Officer found the assessee has not submitted proof of investment in bond Rs. 10,00,000/- and also not disclosed value of flat Rs. 72,00,000/- in the balance sheet as on 31.03.2005 and believed that the income chargeable to tax has escaped assessment and issued notice u/s148 of the Act. In compliance to notice, the assessee filed letter dated 13.07.2012 to teat original return of income filed for assessment purpose. The ld. Authorised Representat....
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.... scope for escapement of income. The ld. Assessing Officer has applied his mind carefully before recording reasons and issued notice u/s.148 of the Act as the information of investment in NABARD capital bond u/s.54EC of the Act and the purchase and construction of property are not supported with evidence. Therefore the ld. Assessing Officer has sufficient reasons and re-opening of assessment is in order and confirmed the order of the Assessing Officer and rejected the assessee ground. 5. On the grounds of claim for deduction u/s.54F of the Act, the assessee has invested the net consideration in construction of residential property only after due date of filing of return. The ld. Authorised Representative filed written submissions dated 27.10.2014 supporting the claim of deduction u/s.54F of the Act alongwith legal provisions and judicial decisions. The ld. Commissioner of Income Tax (Appeals) has considered submissions at page 5 to 9 of his order, with findings and factual aspects of investments, found that the assessee is an individual and due date of filing of return of income is 31.07.2005 and date for filing belated return u/s.139(4) of the Act being 31.03.2007 and the assesse....
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....ncome i.e. 139(4) of the IT Act. The Ho'ble ITAT A Bench in the case of Anil Kumar Aurora reported in [2013] 37 CCH 221 (Mum) also held the similar view. The Hon'ble Gauhati High Court in the case of Rajesh Kumar Jalan reported in 286 ITR 274 held that the capital gains is not chargeable when the appellant has purchased the new property before the extended due date of filing of return u/s 139(4) of the IT Act for the purpose of claim of deduction u/s 54 of the IT Act. Utilization of the funds in constructing the residential house within the stipulated period should be treated as sufficient compliance of Sec. 54 of the IT Act in the cases decided by Jurisdictional Tribunal in the case of Madhuvanprasad in ITA No.2485/Mds/2004 and K.S.Ramachandran in ITA No.941/Mds/2011. The wording of the Sec.54 & 54F in the manner of utilization of the funds are similar. Therefore, since in this case RS.68 lakhs was utilized by the appellant before 31.03.2007 i.e. the due date of filing of return of income u/s 139(4) of the IT Act in the case of the appellant, the AO shall consider the claim of granting the deduction proportionate to the investment in the new property as on 31.03.2007. Ther....
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....ouse (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or [two years] after the date on which the transfer took place purchased, or has within a period of three years after that date [constructed, a residential house] (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,- (a) if the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45 ; (b) if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the net consideration, shall not be charged under section 45: [Provided that nothing contained in this sub-section shall apply where- (a) the assessee,- (i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or (ii) purchases any residential house, other t....