TaxTMI 
TaxTMI 
TaxTMI 
2021 (1) TMI 907
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing of unutilized amount in the Capital Gains Accounts Scheme, on or before the due date of filing the Return of Income u/s. 139(1) of the Act. 4) The Ld. CIT(A) has failed to consider the fact that completion certificate, water connection were not given by the Block Development Officer (BDO) and also assessee has not paid any property tax as per the BDO letter dated 22/12/2017. 5) The Ld. CIT(A) ought to have considered the fact that during the assessment proceedings as well as remand proceedings assessee has failed to submit the construction agreement far verification of details of construction expenses, estimation made by the builder, completion certificate issued by the builder, electricity connection expenses, details of property tax paid etc. 6) For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the earned CIT(A) may be set aside and that of the Assessing Officer be restored." 3. Brief facts of the case are that assessee is an individual and director of M/s. Vastrakala Exports Pvt. Ltd. filed her return of income for assessment year 2015-16 on 31.08.2015 declaring total income of Rs. 87,79,550/-. The case was selected....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... u/s. 139(1) of the Act and hence, not entitled for exemption u/s. 54F of the Act, accordingly, rejected exemption claimed by the assessee and made addition of Rs. 5,06,46,640/-. 4. Being aggrieved by the assessment order, assessee preferred an appeal before learned CIT(A). Before learned CIT(A), assessee has filed detailed written submissions along with certain additional evidences and argued that construction of building was completed in all respects and assessee has obtained electricity connection and also paid property tax on 03.03.2017. The assessee further claimed that even assuming for a moment building was not provided with electricity connection and water connection, but fact remains that it has furnished necessary evidences including bills, vouchers for procurement of materials and labour for construction of building and sanction letter from electricity board dated 20.04.217. The learned CIT(A) has forwarded additional evidences filed by assessee to the Assessing Officer for his comments. The Assessing Officer vide remand report dated 27.05.2019 has reiterated his observations made during the course of assessment proceedings and argued that assessee has failed to file an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....iable sources. This has been abundantly established by the assessee. The assessee has completed the construction and obtained necessary sanctions for residential purposes. It is quite possible that completion certificate from Local authority is not obtained. Local authorities do not issue timely completion certificates for various reasons Assessee cannot be held punishable for the same. On the contrary, the assessee has submitted competition certificates from contractors and engineers of the project. The assessee has been able to independently and verifiably establish that the capital gain amount is utilized towards construction of the property. The properly is constructed well before the deadline. In view of the facts and circumstances as above, I am of the opinion that the assessee has adduced sufficient evidence in support of her claim regarding completion of the residential house. The assessee is held eligible to claim deduction u/s. 54F. Assessing Officer is directed to allow the same." 6. The learned DR submitted that learned CIT(A) has erred in deleting disallowance of claim of exemption u/s. 54F of the Act without appreciating the fact that assessee has failed to comply wi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bsequent investment in purchase of land on or before due date specified under Act was not disputed by Assessing Officer. The Assessing Officer has also not disputed fact that assessee has invested sum of Rs. 1,20,00,000/- in capital gains deposit account scheme on or before due date of furnishing return of income u/s. 139(1) of the Act. The only dispute made by Assessing Officer is with regard to completion of construction of building within three years from the date of transfer of original asset and investment of balance sale consideration in capital gains deposit account scheme. We have gone through observations made by Assessing Officer in light of various evidences filed by assessee before learned CIT(A) and found that learned CIT(A) has recorded categorical finding insofar as completion of construction of building on or before three years from the date of transfer of original asset. We further noted that assessee has placed all evidences including electricity connection obtained from concerned authorities in the month of April, 2017 and has also tax paid receipts for assessment of building for municipal taxes, which is also well before due date specified under the Act. The ass....