2020 (8) TMI 409

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..... She filed her return of income for the assessment year 2012-13 on 17/7/2012 declaring an income of Rs. 18, 01,752/- under the heads of salary, capital gain and other sources. Assessment under section 143(3) of the Income Tax Act, 1961 (for short "the Act") was complete by order dated 30/3/2015 by making addition of Rs. 39,63,524/- by disallowing the exemption claimed by the assessee under section 54 of the act with regard to the Long Term Capital Gain (LTCG) of sale of residential property, on the ground that the old property was sold in the month of August, 2011 whereas the new property was booked in February, 2012 which was proposed to be completed by December, 2014, i.e., beyond a period of more than 3 years from the date of sale of th....

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....IT (2016) and reached a conclusion that since the assessee failed to deposit the unutilised abortion under the capital gains scheme before the filing of the return, no claim of deduction under section 54 of the Act could be allowed. On this count, Ld. CIT(A) confirmed the addition to the tune of Rs. 30,10,474/- . 5. Aggrieved by the action of the Ld. CIT(A), assessee preferred this appeal stating that the Ld. CIT(A) failed to appreciate the fact that the issue on the basis of which the addition to the tune of Rs. 30,10,474/- was sustained was never raised by the learned Assessing Officer during the course of assessment proceedings and was not the subject matter of the appeal before him and therefore, such an action cannot be sustained. It ....

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....a) and on that basis justified the order under challenge. According to him section 54F (4) of the Act itself clearly states that the amount not utilised in purchases/construction of flat/home should be deposited in the specified bank notified by the government and that the provision of section 54F (4) of the Act are very clear and there is no ambiguity, and therefore, there is no occasion to play any liberal/beneficial construction while integrating this particular section. 8. Facts are simple and admitted. Assessee sold the property for Rs. 50 Lacs whereas its indexable cost of acquisition was Rs. 10,36,476/- resulting in the capital gains at Rs. 39,63,524/-. Assessee entered into an agreement on 25/02/2012 for purchase of a residential f....

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....und that he did not deposit said amount in capital gains account scheme before due date prescribed under section 139(1) of the Act. In the case of Kishore H Galaya (supra), the coordinate bench has held that the date of filing return of income under section 139(1) for the purpose of utilization of the amount for purchase/construction of residential house has to be construed with respect to the due date prescribed for filing return of income under section 139(4) of Act. The relevant finding is reproduced as under: "Amount exceeding capital gains arising from sale of old residential house having been paid by assessee to a builder within three years for construction of new residential house, assessee was entitled to exemption under s. 54 not....