2018 (4) TMI 74

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.... arising from this above transaction, after reducing indexed cost of acquisition of D11,27,578/-. Assessee had claimed exemption u/s.54F of the Act for the entire capital gains, based on an investment of D35,76,800/- made by him in a new residential house. As per the assessee, he had constructed a residential house 314-1A/200A, in Plot No.20, Alaguvinayagar Street, Reddiyur Village, Salem. Assessee also filed a valuation report dated 10.07.2014 which inter alia mentioned that the construction had started in January, 2007 and was completed in March, 2008. However, ld. Assessing Officer was of the opinion that assessee ought have invested the net consideration from sale in a residential house within one year from the date of transfer of prope....

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....tant case, the assessee neither deposited the amount of net consideration in any Capital Gain Scheme specified by the Central Government nor utilized. Further, the assessee has not filed return of income for the A.Y.2007-08 within the due date for furnishing return u/s.139(1) or u/s. 139(4). The assessee has filed the return of income in response to notice u/s.148 only on 11.07.2014. Therefore, the assessee is not entitled to claim exemption u/s.54F of the Income Tax Act, 1961. Hence, I do not find any reason to interfere with the assessment order and the grounds of appeal are dismissed''. 4. When the case was called up for hearing, nobody appeared on behalf of the assessee. 5. Ld. Departmental Representative strongly supporting the o....

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....et, though without depositing it under the Scheme. (vii) Construction was commenced in January, 2007 and major work completed prior to 31-07-2007 bringing into existence a livable house. Work on Compound Wall, Wood work, Cement pavement surrounding the house, gate, some of the electrical fittings etc were done after 31- 07-2007. (viii) The registered valuer's report states the construction's completion as March, 2008, only because rates which prevailed during years ended 31-03-2007 and 31-03-2008 were adopted. Ill. Construction made prior to 31-03-2008, time allowed by Section 139(4) satisfies: (a) Assessee has proved incurring substantial amount for acquisition . of residential property prior to ....

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....e of the opinion that sub-section (4) of section 139 of the Act is, in fact, a proviso to sub-section (1) of section 139 of the Act. Section 139 of the Act fixes the different dates for filing the returns for different assessees. In the case of the assessee as the respondent, it is the 31st day of July of the assessment year in terms of clause (c) of Explanation 2 to sub-section (1) of section 139 of the Act, whereas sub-section (4) of section 139 provides for extension in period of due date in certain circumstances. It reads as under : "(4) Any person who has not furnished a return within the time allowed to him under sub-section (1), or within the time allowed under a notice issued under sub-section (1) of section 142, may furnis....