TaxTMI 
TaxTMI 
2016 (9) TMI 1201
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....510/-. The case was taken up for scrutiny and the assessment was completed under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short 'the Act') vide order dated 11.03.2013 wherein the assessee's income was determined at Rs. 6,15,95,202/- in view of the following additions/disallowances; - (i) Recomputation of long term capital gain (LTCG) on denial of exemption claimed under section 54F of the Act Rs. 5,90,99,080/- (ii) Disallowance under section 14 Rs. 2,56,495/- 2.2 Aggrieved by the order of assessment for A.Y. 2008-09 dated 11.03.2013, the assessee preferred an appeal before the CIT(A)-34, Mumbai challenging the aforementioned two additions/disallowances (supra). The learned CIT(A) discu....
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....ndra, Mumbai on 07.08.2008. The transfer deed/agreement for purchase of the property was dated 07.08.2008 when payment of Rs. 5,17,00,000/- was made. The remaining amounts were paid from 01.08.2008 onwards. The AO examined whether the consideration received was utilised before the date of furnishing the return of income under section 139(1) and if not whether the same was deposited in the specified capital gains account before due date for filing of return as per provisions of section 139(1) of the Act. According to the Assessing Officer (AO), the assessee, as per the provisions of section 54F of the Act, in the event of not investing the capital gains arising on sale of the property either in the purchase of a residential house or construc....
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.... that the extended period for filing the return of income under section 139(4) of the Act has to be considered for the purpose of utilization of the capital gains for claiming exemption under section 54f of the Act. According to the learned A.R., the assessee has invested the capital gains arising from sale of shares to the extent of Rs. 5,74,53,660/- in the purchase of flat from M/s. Invex Pvt. Ltd. at 'Emporis', Bandra, Mumbai by 07.08.2008 which is within the extended period available to the assessee to file the belated return under section 139(4) of the Act for A.Y. 2008-09. It is submitted that the very same issue had come up before the Coordinate Bench of this Tribunal in the case of Kishore H. Galaiya vs. ITO (2012) 24 taxmann.com 11....
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....otified by the government before the period for filing the return of income under section 139(1) of the Act, i.e. 31.07.2008,but has utilised the same to the extent of Rs. 5,75,53,660/- thereafter, i.e. by 07.08.2008 before expiry of period to file return under section 139(4) of the Act, the assessee is entitled to exemption under section 54F of the Act. In our view, the above issue is squarely covered by the decision of the Hon'ble Punjab & Haryana High Court in the case of CIT vs. Jagriti Aggarwal (2011) 339 ITR 610 (P&H) wherein their Lordships have held that the provisions of section 139(4) is not an independent provision, but is related to the time contemplated under section 139(1) of the Act. Accordingly, 139(4) of the Act has to ....
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....Rs. 5,77,53,660/- of capital gains in investing in the purchase of a residential property (flat) within the extended period as stipulated under section 139(4) of the Act for A.Y. 2008-09, the assessee is entitled for exemption under section 54F of the Act. We therefore reverse the orders of the authorities below on this issue and consequently allow ground No. 1 of the assessee's appeal. 5. Ground No. 2 - Disallowance under section 14A of the Act 5.1 In this ground the assessee has challenged the disallowance of Rs. 2,56,495/- made by the authorities below under section 14A of the Act. Before us, the learned A.R. for the assessee submitted that the disallowance has been made under section 14A r.w Rule 8D(2)(iii). According to the learn....