TaxTMI 
TaxTMI 
2019 (2) TMI 152
X X X X Extracts X X X X
X X X X Extracts X X X X
....ri D. Anand, the Ld.counsel for the assessee, submitted that the assessee sold a flat of 1601 sq.ft. and undivided share of land of 240 sq.ft. alongwith common built up area and covered car park of 120 sq.ft. for a total consideration of Rs. 1,39,84,000/- to one Shri J. Antony on 22.03.2012. In fact, according to the Ld. counsel, the said flat was purchased by the assessee on 14.09.2007 for a total consideration of Rs. 11,50,000/- and incurred registration charges at Rs. 3,31,528/-. From the sale proceeds of the flat, according to the Ld. counsel, the assessee has purchased 1 acre and 6 centrs of land along with her husband, on 07.02.2013 for a total consideration of Rs. 3,20,00,000/-. The assessee has also constructed a residential buildin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....an deposit the money in the bank on or before 31st August, 2012. In fact, the assessee deposited the money in the bank account on 27.08.2012, which is within the due date fixed by the CBDT for filing return of income. Therefore, the Assessing Officer is not justified in disallowing the claim of the assessee. Referring to the order of the Assessing Officer, more particularly at para 5.10, the Ld.counsel submitted that there was electricity service connection to the residential building constructed by the assessee. Merely because the assessee consumed only 200 units between 11.03.2015 and 13.05.2015, according to the Ld. counsel, it does not mean that there was no building at all. 6. On the contrary, Ms. Anita, the Ld. Departmental Represent....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ained only a temporary electricity service connection for the purpose of construction. 8. The Assessing Officer disallowed the claim of the assessee on two grounds. The first ground of disallowance is that the capital gain was not deposited within the due date for filing return of income, in the Capital Gain Account. As per the orders of both the authorities below, the assessee deposited the funds only on 27.08.2012 at Vijaya Bank, Vadapalani Branch. The second ground of disallowance of exemption is that the building was not completed and it was in progress. 9. Let's now examine the first ground of disallowance, namely, non-deposit of capital gain in the Capital Gain Account within the due date. The provisions of Income-tax Act very clear....
X X X X Extracts X X X X
X X X X Extracts X X X X
....exemption under Section 54 of the Act. Therefore, in the second ground of disallowance also, the Assessing Officer fails. 11. Now the Assessing Officer claims that the assessee has constructed only 215 sq.ft. of house. It is not in dispute that what is constructed is 215 sq.ft. of residential house. The CIT(Appeals) rejected the claim of the assessee on the ground that it is not fit for human habitation. Since the construction was admittedly in progress, it may not be fit for human habitation as claimed by the Revenue authorities. But, the fact is that the assessee has invested the entire capital gain in purchasing the land and to construct the building, which is not in dispute. The Madras High Court in Sardarmal Kothari (supra) has observ....