2024 (10) TMI 1564

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.... of the Income Tax Act, 1961 ('the Act'). 2. During the year under consideration, the assessee sold unlisted securities of three companies on 30-3-2017 and earned Long Term Capital Gain of Rs.3,84,93,237/-. The due date for filing the return of income for the assessee for the assessment year under consideration was extended upto 31-10-2017. Since the assessee proposed to avail exemption u/s. 54F of the Act, he deposited the entire sale proceeds of Rs.4,00,43,410/- in Capital Gains Deposit Account with UCO Bank, Gorakhpur within the due date for filing return of income. Accordingly, the assessee claimed deduction u/s 54F of the Act against the long term capital gains mentioned above in accordance with sec.54F(4) of the Act by treating the....

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....e Ld.AR submitted that as per proviso to section 54F(4) of the Act, the un-utilized portion of the deposit amount kept in the capital gain account shall be charged as income u/s. 45 of the Act of the previous year in which the period of three years from the date of transfer of original asset expires. Hence, the AO would get right to assess the income by withdrawing capital gain exemption in the AY. 2020-21. Accordingly, he submitted that the Ld CIT(A) should have directed the AO to allow deduction claimed by the assessee u/s. 54F of the Act. 6. On the contrary, the Ld.DR supported the order passed by the Ld.CIT(A). 7. We heard rival contentions and perused the record. The Ld.AR submitted that the claim u/s 54F is allowable to the asse....

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....al asset not charged under section 45 on the basis of the cost of the new asset as provided in clause (a) or, as the case may be, clause (b) of sub-section (1), exceeds, (b) the amount that would not have been so charged had the amount actually utilised by the assessee for the purchase or construction of the new asset within the period specified in sub-section (1) been the cost of the new asset, shall be charged under section 45 as income of the previous year in which the period of three years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw the unutilised amount in accordance with the scheme aforesaid." In the instant case there is no dispute with re....