TaxTMI 
TaxTMI 
2018 (11) TMI 860
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.... following grounds of appeal: "1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in allowing the deduction claimed u/s 54 of the I.T. Act. 2. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in allowing the appeal by considering the date of filing of return as per section 139(4) instead of 139(1) for the purpose of depositing the capital gains in the long term capital gains scheme despite the fact that section 54(2) clearly specifies the due date for the said purpose as "[such deposit being made in any case not later than the due date applicable In the case of the assessee for furnishing the return of income under sub-section (1) of section 139]" 3....
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....test by 31.07.2013. Further, the A.O was of the view that in case the assessee could not appropriate the amount of capital gain towards the investment in the new asset, then it was obligatory on his part to have deposited the said amount in the 'Capital Gain Account Scheme' (for short 'CGAS') with a specified bank. 4. It was noticed by the A.O that in respect of the new flat viz. A/203, Crown @ Hiranandani, Thane purchased by the assessee for Rs. 85,92,700/- the first token payment of Rs. 2 lac was made by the assessee on 12.03.2014 and the agreement of purchase was executed on 22.04.2014. In the backdrop of the aforesaid facts, it was observed by the A.O that the assessee had neither utilised the funds for purchase of any residential prop....
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....ind favour with the view taken by the A.O that as the assessee had failed to deposit the amount of the capital gains by the 'due date' of filing of the return of income as contemplated under Sec.139(1) of the Act, thus its claim of exemption under Sec. 54 was liable to be rejected. In the backdrop of the aforesaid deliberations, the CIT(A) being the view that the claim of exemption raised by the assessee under Sec.54 was in order, allowed the appeal of the assessee. 6. The revenue being aggrieved with the order of the CIT(A) has carried the matter in appeal before us. We find that the assessee respondent despite having been intimated as regards the date of hearing of the appeal had however failed to put up an appearance before us. In the b....
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....ssue before us and are persuaded to subscribe to the view taken by the CIT(A). On a perusal of Sec. 54(2), it emerges that the assessee in order to claim exemption under Sec.54 remains under an obligation to appropriate the amount of the capital gain towards the purchase of the new asset within a period of one year before or two years after the date on which the transfer of the original asset took place, or has within a period of three years after that date constructed, a residential house. In so far, where the capital gain is not appropriated by the assessee towards purchase or construction of the residential property within the period contemplated under Sec. 139, then in such a case the entitlement of the assessee to claim the exemption b....
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....propriated the amount of LTCG towards acquisition of the new asset within a period of one year before the date on which the transfer of the original asset took place or for the purchase or construction of the new asset before the date of furnishing the return of income under Sec.139 of the Act; and (b) a case where the assessee had not appropriated the amount of the capital gain before the date of furnishing the 'return of income' under Sec.139, there he shall be eligible to claim exemption under Sec.54 towards purchase of the new asset within a period of two years after the date on which the transfer took place or towards construction of a new asset within a period of 3 years from the date on which the transfer took place, subject to a rid....