2018 (8) TMI 1244

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....16; respectively, arising in the assessment orders both dated 13.03.2015 passed by the Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2012-13. 2. The captioned appeals involve common issue of allowability of deduction under s. 54B of the Act and therefore were heard together and disposed of by this common order. 3. We first advert to ITA No.109/Ahd/2017 for appreciation of facts and determination of issue. ITA No.109/Ahd/2017 4. The assessee has challenged the action of the Revenue Authorities in disallowing deduction of Rs. 5,18,125/- claimed under s.54B of the Act. 5. Briefly stated, the assessee is an agriculturist and filed his return of income belatedly on 24.02.2014 under s.13....

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....al gains of Rs. 5,18,125/- under s.54B of the Act towards purchase of agricultural land after the due date of filing of return of income under s. 139(1) of the Act based on interpretation of embargo placed under s. 54B(2) of the Act. 7. Aggrieved by the denial of deduction under s.54B towards purchase of agricultural land after the due date of filing of return under s.139(1) of the Act, the assessee preferred appeal before the Tribunal. 8. When the matter was called for hearing, none appeared for the assessee despite service of notice. Accordingly, the matter was proceeded ex parte. 9. The learned DR relied upon the order of the CIT(A) and contended that in view of the provisions of Section 54B(2) of the Act, the assessee was requi....

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....aced under s.54B(2) is that the un-utilized capital gain is required to be invested for acquisition of new asset within the time limit prescribed under s.139 of the Act and therefore the time limit cannot be restricted to what is referred to under s.139(1) of the Act but also extends to encompass extra time limit available under s.139(4) of the Act. 11. We find ourselves in agreement with the case made out by the assessee before the lower authorities as noted above. Section 54B(2) of the Act enjoins that the capital gain is required to be utilized by the assessee towards purchase of new asset before furnishing of return of income under s.139 of the Act. Alternatively, in the event of non utilization of capital gains towards purchase of n....

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....ce of Section 139 of the Act, in variation to Section 139(1) of the Act referred for deposit in capital gain scheme. This distinction assumes significance for interpretation of a beneficial provision. Thus, a beneficial view may be taken to say that Section 139 being omnibus and colorless would cover extended time limit provided under s. 139(4) of the Act. Thus, when an assessee furnishes return subsequent to due date of filing return under s.139(1) but within the extended time limit under s.139(4), the benefit of investment made up to the date of furnishing of return of income prior to filing return under s.139(4) cannot be denied on such beneficial construction. Thus, on first principles, we hold that the capital gains utilized towards pu....