2017 (6) TMI 439

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....on 2.8.2011 for a sum of Rs.  1.60 crores. The assessee purchased another residential house property on 26.7.2012 for a sum of Rs.  2.75 crores. The assessee claimed exemption u/s. 54 of the Act on the value of new house property against the capital gain computed on sale of old house. The Assessing Officer noticed that the assessee had entered into an agreement to purchase a new house on 26.7.2012 and paid the consideration by way of several cheques. Some of the cheques issued by him have been cleared after 2.8.2012. The Assessing Officer noticed that two cheques aggregating to Rs. 75.00 lakhs have been cleared prior to 2.8.2012. The Assessing Officer took the view that the consideration for the new house should have been paid by ....

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....nsfer. Admittedly in the instant case the assessee has purchased a new residential house and paid the consideration within two years from the date of transfer. Section 54(2) states that the amount which has not been utilised for purchasing a new house before the due date of furnishing of return of income u/s. 139 of the Act shall be deposited by him before furnishing such return in an account in any such bank or institution as may be specified in and shall be utilised in accordance with scheme so framed in this regard. 6. The learned Departmental Representative submitted that the provisions of sec.54(2) prescribe for depositing the amount into Capital gain account scheme before the date of furnishing return of income. He submitted that the....