2018 (1) TMI 508

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....claring an income of Rs. 1,90,200/-. He also declared income from capital gains at Rs. Nil with a narration that the sale proceeds will be invested in construction of house property. The A.O issued a notice u/s 148 of the Act on 10-04-2013, against which, the assessee filed necessary information and requested that the return filed originally may be treated as the return filed in response to the notice u/s 148 of the Act. 3. During the reassessment proceedings, the A.O observed that the assessee has sold certain immovable properties and has reported the sale consideration as per the sale deeds, whereas the SRO value of the said properties was much higher. The assessee justified the lower sale price by stating that there were some problems....

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....equential levy of interest u/s 234A and 234B of the IT Act. 5. The Ld. Counsel for the assessee submitted that the assessee has invested the entire capital gain for construction of a new house within the period of three years from the date of original asset and therefore should be allowed the deduction u/s 54F of the IT Act. In support of this contention, he placed reliance upon the decision of the Hon'ble High Court of Punjab and Haryana in the case of CIT Vs Ms. Jagriti Aggarwal [2011] 15 taxmann.com 146 (P &H) and also the decision of the Hon'ble High Court of Karnataka in the case of CIT Vs Smt. Vrinda P. Issac [2012] 24 taxmann.com 131 (Karnataka). He also placed reliance upon the decision of 'B' Bench of this Tribunal in ITA No. 17....

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....s case, undisputedly, the assessee has not deposited the unutilized net consideration into any bank account, leave alone, the capital gain account. Without prejudice to the contention of the assessee that the entire amount of capital gain is to be allowed u/s 54F of the Act, it is the case of the assessee that the assessee has time up to the date of furnishing of the return of income u/s 139(4) of the Act to deposit it into the capital gains account and whatever has been incurred by the assessee till such date should be allowed. In support of this contention, he has placed reliance upon the decision of the Hon'ble High Court of Punjab and Haryana in the case of CIT Vs Ms. Jagriti Aggarwal (supra) and also the decision of the Hon'ble High Co....