TaxTMI 
TaxTMI 
2020 (10) TMI 1161
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....nal, 'A' Bench, Chennai in ITA No.301/Mds/2017 dated 02.11.2017 for the Assessment Year 2012-2013. 2. The present Tax Appeal is admitted on 24.07.2018 on the following Substantial Questions of Law: "1. Whether the Tribunal was right in holding that the assessee is not entitled to claim deductions under Section 54 of the Income Tax Act, 1961? 2. Whether the Tribunal was right in holding that the withdrawals made from the capital gains accounts of the assessee was not used towards construction of a residential house?" 3. We have heard Mr.R.Lakshmi Ratan, learned counsel for the appellant / assessee and Ms.R.Hemalatha, learned senior standing counsel for the respondent / revenue. 4. We find that there are several issues, which....
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.... -Rs. 33,00,000/- on 30/07/2012 with State Bank of India vide Account No.32455024095. - Rs. 12,05,000/- on 30/07/2012 with State Bank of India vide Account No.32455028058. -Rs. 25,000/- with State Bank of India vide Account No.32449616206 The total amount invested in the Capital Gains Scheme Account works out at Rs. 95,30,000/- 13. Out of the total amount of capital gains, a sum of Rs. 24,31,000/- was invested in the purchase of the land for constructing a new residential house as per the provisions of Section 54 of the Act. An amount of Rs. 1,94,380/- and Rs. 24,450/- was incurred towards Stamp Duty and Registration Charges for the purchase of plot for constructing the residential house. The total amount of investment works ....
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....from 15.03.2013 to 21.04.2014. 16. From the perusal of the above facts, it is found that the appellant has invested a sum of Rs. 1,27,03,079/- (95,53,249/- + 26,49,830/- +5,00,000/-) towards the construction of house property and purchase of the plot for constructing the house property. Since the investment of Rs. 1,27,03,079/- (Rs. 95,30,000/- was routed through the Capital Gain Account) was made prior to the due date of filing of the return of income i.e., 31.07.2012, the appellant was eligible to claim the deduction of Rs. 1,26,79,812/- u/s 54 of the Act. The observation of the AO that the construction of new house property was not completed within the period of three years, as stipulated u/s 54 of the Act. The observation of the tO t....
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....onstruction before 16.05.2014. It is the submission of the appellant / assessee that the said aspect was also not properly appreciated by the Tribunal. We find that the assessing officer has not given elaborate reasons as to why the assesseee was not entitled for deduction under Section 54 of the Act. It is the submission of the learned counsel that decision of the Division Bench of this Court in Commissioner of Income Tax V. Sardarmal Kothari [(2008) 302 ITR 286] would come to the aid of the assessee. 7. Per contra, Ms.R.Hemalatha, learned senior standing counsel for the revenue would submit that the law laid down in the decision of Commissioner of Income Tax V. Sardarmal Kothari and other decisions relied on by the learned counsel for th....