2017 (1) TMI 120

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....l memo are required to be answered which are as under:- "i) Whether the ld. ITAT has seriously erred in having upheld the initiation of proceedings u/s 147/148 of the Act of 1961 with a view to tax an income, which has already been included within the fold of assessment by way of an appropriate order under sec 154? ii) Whether the statutory authorities administering the Act of 1961 can be permitted to refuse to grant an exemption u/s 54(1)/(2) of the Act of 1961 even though appellant has deposited the entire surplus of the capital gains earned by her in an independent savings account of a scheduled bank and has thereafter utilized the same in construction of her new residential house within the time frame specified therefore, solely bec....

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....5,53,520. The assessee preferred an appeal against the order u/s 154 dt. 23.8.93. Before the Commissioner of Income Tax (Appeals) the assessee furnished a certificate from Branch Manager, State Bank of Bikaner & Jaipur, Chandpole Bazar, jaipur mentioning that the amount deposited in the bank account is under the capital gain scheme. On the basis of this certificate the Commissioner of Income Tax (Appeals) held that the certificate of Branch Manager, SBBJ, Chandpole, Jaiapur cannot be admitted at this stage and accordingly it rejected the appeal of the assessee. However, it was advised to the assessee to file an application for rectification with proper evidence before the Assessing Officer so that assessee's claim u/s 54 could be re-examine....

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....te which is required to be done in particular manner have to be done in the manner prescribed. To avail the benefit of exemption, the assessee was required to deposit the amount as provided under capital gain scheme. Merely because the amount has been deposited in a separate account, the same will not fulfil the requirement. 7. We have heard the learned counsel for the appellant and counsel for the respondent. 8. While confirming the order of under 147 & 148, the Tribunal has observed as under:- "4. Considering the aforesaid arguments advanced by the parties in view of orders of the lower authorities and having gone through the decisions relied on by them, we find substance in the opposition of the ld. D/R that taking action for rectifi....