2021 (7) TMI 159

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 12,26,790/- denying the benefit of deduction U/s. 54F of the Act." 3. The brief facts of the case are that the assessee is an individual. The assessee failed to file her return of income for the relevant AY 2008-09. Subsequently, it was revealed that the assessee had sold her property thereby earning capital gain. Thereafter in response to the notice issued U/s. 148 dated 25/3/2015 the assessee filed her return of income on 29/6/2015 admitting LTCG of Rs. 3,29,460/- after claiming deduction U/s. 54/54F for Rs. 11,07,971/-. The assessee has stated to have purchased a new house property for Rs. 15,56,250/- on 6/6/2009. After due verification the assessment was completed U/s. 143(3) r.w.s 147 of the Act 13/7/2015 accepting the returned incom....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and pleaded for confirming the same. 5. I have heard the rival submissions and carefully perused the materials on record. On an earlier occasion the SMC Bench of Hyderabad Tribunal in ITA No. 504/Hyd/2020 in the case of Satya Prakash Reddy Aedudodla vs. ITO vide Order dated 22/06/2021 following the decision of the Division Bench of Chennai Tribunal had held that if the sale proceeds are deposited in any Nationalised Bank it would suffice though not transferred to the capital gain deposit scheme account. The relevant portion of the Hyderabad Bench of the Tribunal is extracted herein below for reference:- "10. However, with respect to the claim of deduction U/s. 54F of the Act for Rs. 30 lakhs the Chennai Bench of the Tribunal in ITA No. 2....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... that everyone is presumed to know the law, but that is not a correct statement there is no such Maxim known to the law. In the given case before us also, it is not disputed that the assessee had not fulfilled the conditions prescribed under section 54 of the Act barring the deposit of the sale proceeds in the "capital gain scheme account". Moreover, the facts reveal that the assessee had deposited the entire sale proceeds in his savings bank account maintained with nationalized bank out of which he has constructed his house. The only small lacuna assessee had made is that the assessee though had placed the entire sale proceeds in the nationalized bank he has not transferred the same in the "Capital gain scheme account". Considering these f....