2023 (1) TMI 829

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....f the Act on 27-12- 2017. The grounds raised by the assessee read as under:- "1. The Assessing Officer erred in disallowing part of the construction expenses incurred by the assessee in constructing house property under the facts & circumstances of the case. 2. The Assessing Officer erred in disallowing investment made by the assessee in purchasing adjacent property forming part of original property under the facts & circumstances of the case. 3. The Assessing Officer erred in making addition of Rs.75,56,398/- under capital gains and levying of tax Rs.22,73,720/- under the facts & circumstances of the case. " Evidently, the sole grievance of the assessee arises out of computation of capital gains. 2. The Reg....

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....nt Scheme by due date of filing of return of income i.e., by 31.07.2015 which was not done and accordingly, the deduction was to be restricted to the extent of investment made up-to that date. This was as per the decision of Hon'ble Bombay High Court in Humayun Suleman Merchant vs CIT (23 Taxmann.com). Since the property purchased on 29.11.2013 fall beyond one year from the date of sale i.e., 23.02.2015, no deduction would be available to the extent of Rs.45 Lacs. The amount spent on investment and construction up-to 31.07.2015 in second property purchased on 29.04.2015 aggregated to Rs.156.80 Lacs which alone would be eligible for deduction u/s 54F. 5. The relevant dates and chronology of events was tabulated by ld. CIT(A) as under: - ....

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....g thereon. The Ld. CIT(A) upheld disallowance of Rs.45 Lacs and also upheld the restriction of deduction on the ground that unutilized gains were not deposited in Capital Gains Account Scheme. Aggrieved, the assessee is in further appeal before us. Our findings and Adjudication 6. It could be seen that the assessee has entered into sale agreement dated 15.05.2013 for sale of property for Rs.283 Lacs. The terms of the sale agreement has been honored and the intended purchaser has paid sale consideration from time to time. The full sale consideration has been paid on 16.12.2013 whereas sale deed has been executed on 23.02.2015. The possession is stated to be handed over on 15.10.2014. As against installments so received, the assessee....