2018 (1) TMI 1420

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.... income from other sources and capital gains. Assessee filed its return of income for A.Y. 2012-13 on 20.12.2012 declaring total income of Rs. 2,20,702/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dt.10.03.2015 and the total income was determined at Rs. 2,20,700/- being the same as return of income filed by the assessee. Thereafter on perusal of the assessment records, Ld.PCIT noticed that assessee had sold a flat on 09.05.2011 for Rs. 1,40,00,000/- and had claimed exemption u/s 54F of the Act for investment in construction. He was of the view that the claim of deduction u/s 54F was not in order because the date of investment of Rs. 76,20,583/- towards new residential property w....

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....le in relation to the amount paid / spent before the sale of original asset. 4. The Prl.CIT erred in conducting that some of the money is invested in new house after the due date of filing the return of income and therefore, the money should have been parked in Capital Gain Account, whereas all the payments are made before due date of filing the Return of Income." 3. Before us, at the outset, Ld.A.R. submitted that though assessee has raised several grounds but the sole controversy is with respect to invoking the revisionary powers by Ld.PCIT u/s 263 of the Act. 4. Before us, Ld.A.R. reiterated the submissions made before Ld.PCIT and pointed to the chart of events placed in the Appeal Memo. From the aforesaid Chart, he submit....

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....ubmissions and perused the material on record. The issue in the present case is with respect to invocation of revisionary powers u/s 263 of the Act by Ld.PCIT. Ld.PCIT was of the view that assessee is not eligible for claim of deduction u/s 54F of the Act because according to him exemption u/s 54F is available for capital gains on transfer of long term capital asset only if the assessee has within a period of one year before or two years after the date on which the transfer took place or within a period of three years after constructed a residential house. In the case of assessee since the purchase of new property was on 18.11.2009 i.e., beyond one year prior to the date of sale, the assessee was not eligible for benefit u/s 54F of the Act.....