2016 (2) TMI 1193

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....ther sold the plot admeasuring 3894 sq.ft. situated at Civil Lines, Ward No.14, Hoshangabad and Shri Abdul Shakil S/o Mohd. Yusuf sold his plot admeasuring 4580 sq.ft. situated at Civil Line Ward No.14, Hoshangabad, combinedly through single sale deed. Thus, total land admeasuring 8474 sq.ft. was sold for sale consideration of Rs. 25,00,000/-. Hence, the sale consideration of Rs. 25,00,000 was apportioned between the two families according to size of their plots and, thus, Rs. 16,00,000/- was given to Abdul Shakil which is evident from the perusal of pass book and Rs. 9,00,000/- remained with assessee's family to be apportioned between the assessee and Smt. Hamida Bee and brother Shri Mohd. Mehtab. But as per market value adopted by the sta....

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....within 3 years from the date of transfer. The ld. AO denied the deduction holding that the assessee had not deposited the amount upto due date of filing of return u/s 139(1). The assessee submits that u/s 54F, there are two time limits provided :- - Construction of New House - Date of filing of return u/s 139 - Deposit in capital gain account scheme - Due date of filing of return u/s 139(1) The requirement of depositing in the capital gains account scheme arises only when the amount is not invested upto the date of filing of return u/s 139. It is important to note that Section 54F uses the phrase 139, and does not refer to any specific sub-Section of 139. Therefore, 139(1) cannot be presumed. If the assessee, instead....

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....erty on 03.09.2007 and assessee has completed new residential house in October 2009. The time limit for construction of new house, which available to the assessee was three years from the date of transfer of the property i.e. on 03.09.2010. The assessee has not filed the return of income u/s 139, which is available to the assessee for assessment year 2007-08 on 31.07.2008. The time limit for return u/s 139 was 31st March, 2010. No return was filed. The assessee filed the return in response to notice u/s 148 on 12.6.2012. It is the contention of the assessee that the assessee has not deposited any amount in capital gain account scheme. However, the assessee has utilized this amount in construction new residential house within 3 years from th....

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....eturn is accepted, then the assessee is entitled for such deduction. We find that similar issue had come up before Hon'ble Gauhati High Court in the case of CIT vs. Rajesh Kumar Jalan, (2006) 157 Taxman 398 (Gau), wherein the assessee has sold his one fourth share in a residential property for a consideration to the State Government on 21.12.1995 and earned capital gain. The assessee negotiated and entered in to the two agreements dated 9.5.1996 and 17.5.1996 with the owners 'R' and 'A' for the purchase of their residential flat for a consideration. The AO rejected the assessee's claim of exemption u/s 54 on the ground that the assessee failed to comply with Section 54 by not depositing the unutilized amount of capital gain in the Capit....