TaxTMI 
TaxTMI 
2020 (10) TMI 1197
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....ed order for the sake of convenience. 2. It is a recalled matter inasmuch as the Tribunal disposed off the assessees' appeals on 31-12-2018 by means of an ex parte order dismissing the same primarily on the ground that the assessee violated the provisions of section 54B(2) inasmuch as the time limit for depositing the amount in Capital gain account scheme, by virtue of section 139(4), was 31-03-2013. After the assessee filed Miscellaneous Applications making written submissions that the time for filing of belated return u/s.139(4) was 31-03-2014 and not 31-03-2013, the Tribunal recalled its earlier order on 11-09-2019. That is how the instant appeals have come up for consideration once again before the Tribunal. ITA No.617/PUN/2018 - ....
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....he view taken by the AO by relying on judgment of Hon'ble Bombay High Court in Humayun Suleman Merchant Vs. CCIT (2016) 242 Taxman 189 (Bom.), which was, in fact, relied on by the assessee in support of her claim of exemption u/s 54B. Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 4. I have heard the rival submissions through virtual court and gone through the relevant material on record. The facts are not in dispute. However, a brief recital of facts is considered necessary. The assessee sold agricultural land on 12-10-2011. Due date for filing return for the assessment year 2012-13 under consideration as per section 139(1) was 31-07-2012 and the date for filing belated return u/s.139(4) was 31-03-2014. It....
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....as income of the previous year in which the transfer took place, it shall be dealt with ....'. Section 54B(1) is subject to the provisions of sub-section (2) which, in turn, provides that : "The amount of the capital gain which is not utilised by the assessee for the purchase 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.... for the purchase of the new asset together with the amount so deposited shall be deemed to be the cost of the new ....
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....rded to sub section (4) of Section 54F of the Act The Court in the aforesaid decision held that the requirement of depositing before the date of furnishing of return of Income under Section 139 of the Act has not to be restricted only to the date specified in Section 139(1) of the Act but would include all sub section of Section 139 including sub section (4) of the Act. On the above basis it concluded that if the amount is utilized before the last date of filing of the return under Section 139 of the Act then the provision of Section 54(2) of the Act would not hit the assessee before it. It is not very clear in the above case whether the amounts were utilized before the assessee filed its return of income or not." 8. On going through the....
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....exemption u/s.54, language of which is substantially similar to that of section 54B. In that case, the assessee did not deposit the amount in capital gain account scheme but actually purchased the new property within the stipulated period of section 54(1). The Hon'ble High Court held that the requirement of depositing in the capital gain account scheme u/s.54(2) is directory. If the amount is utilized within the stipulated period of two/three years while depositing in the capital gain account scheme, there can be no denial of exemption u/s.54 because the substantial requirement of purchasing new property was satisfied. Coming back to the facts of the instant case, it is seen that section 54B(1) requires purchasing of new agricultural land w....