TaxTMI 
TaxTMI 
2018 (8) TMI 1809
X X X X Extracts X X X X
X X X X Extracts X X X X
....arned Commissioner of Income Tax (Appeals)-31 ought to have considered and accepted payment made towards booking of new flat on 17/11/2011 to Manoj Gangadhar Burkule. 2. The Learned Commissioner of Income Tax (Appeals) 31 ought to have allowed exemption under section 54 of the income tax Act 1961. 3. The learned Commissioner of Income Tax (Appeals) 31 ought to have directed the learned income tax officer to issue summons under section 133(6) of the income tax Act 1961 in the interest of principle of natural justice. 4. The learned Commissioner of income Tax (Appeals) 31 ought to have considered date of investment in new flat was within the stipulated time limit for construction of house i.e. three years. The as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ccordingly, the assessee claimed deduction u/s 54 for Rs. 32 Lacs which has been denied since the investment in the new property, in the opinion of Ld. AO, was beyond two years from the date of transfer i.e. 05/11/2009 as envisaged by Section 54(1). Another reason to disallow the deduction was the fact that the assessee failed to produce any documentary evidences to demonstrate investment in the new property. Finally, the aforesaid deduction was denied to the assessee and Long Term Capital Gain was computed as Rs. 35.60 Lacs which was assessed in the hands of the assessee. 3. Aggrieved, the assessee contested the same without any success before Ld. CIT(A) vide impugned order dated 15/09/2014 wherein the stand of Ld. AO was confirmed. Agg....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2010 was 15/10/2010. In such a case, the amount so deposited by him, in terms of provisions of Section 54(2), is deemed to be the cost of new asset and accordingly the assessee was entitled for deduction of the same during impugned AY. For the sake of clarity, the relevant statutory provisions as contained in Section 54 are reproduced below:- Profit on sale of property used for residence. 54.(1) Subject to the provisions of sub-section (2), where, in the case of an assessee being an individual or a Hindu undivided family], the capital gain arises from the transfer of a long-term capital asset, being buildings or lands appurtenant thereto, and being a residential house, the income of which is chargeable under the head "Inco....
X X X X Extracts X X X X
X X X X Extracts X X X X
....The amount of the capital gain which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset took place, or which is not utilized by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [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] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notificat....