TaxTMI 
TaxTMI 
2018 (2) TMI 875
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....ee, he had entered into sale cum construction agreement dated 20.11.2007 with M/s Skyline Construction and Housing Pvt. Ltd. for purchase of flat no. A-304, Skyline Magnolia, Bangalore and had made payment amounting to Rs. 57,14,699/- towards the purchase of this new residential house on different dates ranging from 18.5.2007 to 15.4.2011. It was the assessee's contention before the Assessing Officer that the new residential property was acquired vide sale deed dated 20.04.2011 which was within a period of three years from the date of sale for the old residential property and since the construction of the new house had been completed within the period of three years from the date of transfer of the old residential property, requirements of ....
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..... 2.1 Aggrieved, the assessee preferred an appeal before the Commissioner of Income Tax(A) who partly allowed the assessee's appeal by holding that the assessee was entitled to benefit of section 54 in view of the judgment of the Hon'ble Allahabad High Court in the case of H.K. Kapur 234 ITR 753(Allahabad) wherein it was held that the agreement to construction being dated prior to the date of transfer of old asset was ultimately for allowing the benefit of exemption u/s 54 of the Act. However, the ld. Commissioner of Income Tax(A) also noted that the amount of capital gain not utilised for the construction of new house upto the due date of filing of return u/s 139(1) of the Act should have been deposited in the notified capital gain accoun....
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.... deduction had been allowed on these two amounts by the department. It was further submitted that only two amounts on which the deduction had not been allowed were: Rs. 12 lakh paid on 20.06.2008 and Rs. 14,91,697/- paid on 22.08.2008. It was submitted that these payments were made prior to the date of sale of Noida property for which deduction was claimed in the return of income but was disallowed in the assessment. It was also submitted that the observation of the ld. Commissioner of Income Tax(A) in respect of these two payments as having not been deposited in the capital gains account scheme was incorrect as these amounts were actually expended by the assessee prior to the date of sale of property and, therefore, there was no requiremen....