2024 (7) TMI 1183

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.... 2. The Assessee has taken the following grounds of appeal:- "1. The appellant humbly submits that the Ld CIT(A) has erred in law as well on facts while passing the Order by not granting benefit under Section 54, that the appellant has utilized all the consideration received from the sale of Land for the construction of the residential house before the filling of the return under Section 139 and thereby denying the exemption under Section 54F of the Act." 3. At the time of hearing before us, when the case was called up for hearing, none appeared on behalf of the assessee. Further, we observe that in the previous five occasions, the Authorized Representative of the assessee has sought adjournment. However, today none appeared ....

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....tion of Rs. 1,74,62,500/- being expenses incurred for construction of residential house before filing of return under Section 139(4) of the Act. The AO found that the mandate under sub Section (4) of Section 54F of the Act is that the amount not utilized towards the purchase of the flat has to be deposited before the due date of filing of return of return of income under Section 139(1) of the Act, in a specified bank account. In the case of the assessee, AO found that the entire amount of capital gains on sale of asset which is not utilized and has not been deposited in a specified bank account before due date of filing of return under Section 139(1) of the Act. Therefore, AO held that since the assessee has not deposited the amount, the as....

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....ssee. Further, Ld. CIT(Appeals) also observed that the assessee has not submitted any evidence which shows that the construction of the new property was completed within 3 years from the date of sale of the property. Therefore, on facts, Ld. CIT(Appeals) observed that the assessee has grossly failed to establish any of the conditions laid down for claim of exemption under Section 54F of the Act. Accordingly, while dismissing the appeal of the assessee, Ld. CIT(Appeals) made the following observations: "5.2 Where, however, an assessee is unable to utilize the net sale consideration received on the transfer of the long term capital asset before the date of filing the return, sub-Section (4) of Section 54F provides that exemption from....

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....ties on the date of sale of the property. Therefore, I find that the appellant has not establish with satisfactory evidences before the AO that the claim of exemption of Rs 1,74,62,500 u/s 54F of the Act was allowable. The appellant has failed to fulfill more than one condition to claim exemption u/s 54F of the Act. Even in the appeal proceedings, the appellant did not respond and furnish necessary evidences to prove his claim of deduction u/s 54F of the Act. In view of the above, the appeal on this ground is dismissed. 6. Conclusion: in the result, appeal of the appellant is dismissed." 6. The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(Appeals) confirming the additions made by the assessing of....