AI Drafter 
TaxTMI 
TaxTMI 
2017 (10) TMI 1079
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....d not filed the return of income within 30 days from the date of issue of notice U/s 148 of the I.T. Act 1961. 2. Levy of Interest U/s 234B, 234C Erred in confirming the levy of interest U/s 234B and 234C which is not in accordance with the provisions of law. The Appellant craves to add, alter, delete or modify any of the above grounds of appeal and request to consider each of the above grounds without prejudice to one another. 2. Briefly stated, the facts of the case are that the assessee had in response to a notice issued under Sec. 148 filed her 'return of income' for A.Y. 2003-04, declaring taxable income of Rs. 7,04,169/- after claiming exemption under section 54F amounting to Rs. 20,00,000/- against the 'Long-term capital gains' arising from sale of shares. The case of the assessee was re-opened and a notice under Sec. 148 was issued and served upon him. The assessment in this case was completed under section 143 (3) r.w.s. 147 on 15.12.2010 at an income of Rs. 27,69,870/- and it was held by the A.O that the share transaction entered into by the assessee resulting in long term capital gains were not genuine. Since the long-term capital gains were not trea....
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....regards the allowability of claim of exemption u/s 54F. It was further observed by the CIT(A) that his predecessor had as a matter of fact simply directed the A.O to allow the exemption u/s 54F, as per law. Thus in the backdrop of his aforesaid observations, the CIT(A) concluded that the A.O while giving effect to the appellate order and the directions of his predecessor, had thus in the spirit of the 'directions' given in the appellate order, rightly dealt with the claim of the assessee towards exemption u/s 54F. The CIT(A) while approving the aforesaid examination by the A.O of the allowability of exemption u/s 54F while giving effect to the order of his predecessor, therein observed that the CIT(A) had nowhere stated that the claim of exemption u/s 54F was to be allowed as claimed by the assessee, but rather, had directed that the same was to be allowed ,as per law. The CIT(A) thus deliberating on the fine distinction between the wording 'to be allowed' and 'to be allowed as per law', thus held that the issue of allowability of the claim of exemption had not reached finality pursuant to the directions of the CIT(A), therefore, the A.O was well within his jurisdiction to examine ....
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....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 than the new asset, within a period of one year after the date of transfer of the original asset; or (iii) Constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset; and (b) The income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the head "Income from house property"] Explanation- For the purposes of this section- "net consideration", in relation to the tr....
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.... deposit: and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset: Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then,- (1) the amount by which- (a) the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of the new asset as provided in clause (a) or, as the case may be, clause (b) of sub-section (1), exceeds (b) the amount that would not have been so charged had the amount actually utilised by the assessee for the purchase or construction of the new asset within the period specified in sub-section (1) been the cost of the new asset, shall be charged under section 45 as income of the previous year in which the period of three years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw the unut....
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....n assessee beyond the specified time period contemplated in the notice issued u/s 148, would though lead to characterizing the same as a 'return of income' filed beyond the stipulated time period, but however, the same would not cease to be a 'return of income' filed pursuant to the notice issued u/s 148, though involving some delay. We find that our aforesaid view is supported from the very fact that as per section 234A(3), where the 'return of income' in compliance to a notice u/s 148 is filed beyond the stipulated time period, then interest under the said statutory provision is imposed on the assessee till the date of furnishing of the same. We may herein observe that Clause (a) of Section 234A(3) clearly contemplates that a 'return of income' filed after the expiry of the stipulated time period shall still continue to be a 'return of income' filed by the assessee pursuant to the notice u/s 148. We find that our aforesaid view also stands fortified from the very fact that after the assessee had filed the 'return of income' pursuant to the notice u/s 148 on 10.08.2010, the same was acted upon by the A.O and a Notice u/s 143(2) was issued to the assessee, followed by culmination o....