TaxTMI 
TaxTMI 
2021 (12) TMI 506
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....after the assessee has filed the present appeal with delay of 64 days. We are convinced with the reasons given as above in the application for condonation of delay and accordingly condone the delay in filing appeal. 3. The assessee is an individual. She sold two pieces of industrial land 05.05.2014 for a consideration of 4,70,00,000/-. The first piece was sold for a consideration of Rs. 1,70,00,000/- and the second piece was sold for Rs. 3,00,00,000/- but the valuation in terms of section 50C of the Income-tax Act, 1961 (hereinafter called 'the Act') of the second piece of land was Rs. 3.4 Crores. The assessee computed long term capital gain as follows: Sale Consideration Rs. 5,10,00,000/- Less: Indexed Cost of Acquisition Rs. 13,62,480/- Gross Total income Rs. 4,96,37,520/- Less : Deduction u/s.54F Rs. 2,43,32,118/- Taxable Capital Gains Rs. 2,53,05,402/- 4. The case of the assessee was selected for limited scrutiny to examine the correctness of deduction claimed u/s.54F of the Act, and statutory notices were issued to the assessee calling for details and the same were furnished from time to time. In course of the assessment proceedings, the ass....
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....he new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,- ............ (2)... (3).... (4) The amount of the net consideration which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset took place, or which is not utilised by him for the purchase or construction 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 or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the....
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....ds i.e., 05/05/2014 and hence, the assessee had not complied with the conditions for grant of exemption since the purchase was made 5 days after the period of 2 years had expired. 8. As per the provisions of Sec.54F(4) of the Act, if the long term capital gain is not invested in purchase or construction of residential house then net consideration which is not appropriated by the assessee towards the purchase or construction 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 or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf. According to the AO, the Assessee did not deposit the net consideration or unutilized consideration into a capital gain accounts scheme. The AO therefore denied the benefit of deduction to the Assessee u/s.54F of the Act, even on this gr....
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....tion on this score is liable to be vacated. 11. With regard to the deposit of net consideration or unutilized consideration received on transfer of capital asset in capital gain scheme account, the CIT(A) agreed with the submission of the Assessee and directed AO to allow deduction u/s.54F of the Act proportionate to the extent the net consideration has been invested in the capital gain scheme account. He also directed the AO to verify the utilization of the funds from the capital gain scheme account and take action in the year in which the period for utilization ends, if the assessee does not utilize the funds as required by law. In this regard the provisions of proviso to Sec.54F(4) provides that if the amount deposited under this sub-section is not utilized wholly or partly for the purchase or construction of the new asset within the period specified in subsection (1), then to the extent of non utilization, capital gain will be charged to tax as income of the previous year in which the period of three years from the date of the transfer of the original asset expires. In this case, the AY 2018-19 will be the Assessment year in which the period of 3 years from the date of trans....