TaxTMI 
TaxTMI 
2025 (8) TMI 1364
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....At the outset, we find that there is a delay of 155 days in appeal filed by the assessee, for which the assessee has filed affidavit stating the reasons for delay, wherein, it is submitted that the assessee is 84 years old, did not have help of professionals on regular basis and was unaware of the receipt of the order of the ld.CIT(A) on 06.12.2024 since he was not watching emails regularly. Only when he was aware of the order of the ld. CIT(A) approached a CA on 01.03.2025 and immediately initiated for filing of appeal. After considering the Affidavit filed by the assessee and also hearing both the parties, we find that there is a reasonable cause for the assessee in not filing appeal on or before the due date prescribed under the law and ....
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....ed his return of income on 04.08.2017 for the AY 2017-18. The assessee filed his revised return of income for the AY 2017-18 on 16.07.2018 declaring a total income of Rs. 37,32,299/- including capital gain on the sale of his house property on 23.08.2016 for Rs. 7.50 crores after claiming deduction of Rs. 6.45 crores u/s.54 of the Act - for investment in another residential house property by investing the said Rs. 6.45 crores in Capital Gain Account Scheme (CGAS) with SBI. The assessee's case was selected for scrutiny and the order u/s.143(3) of the Act was finalized determining his total income as Rs. 6,92,04,950/-. 5. During the assessment proceedings AO found that the assessee had purchased a flat for Rs. 2.15 crores on 20.02.2019, whi....
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....es only if the amount remains unutilized upon expiry of 3 years from the date of transfer, which would fall in FY 2019-20 (AY 2020-21). However, the ld. CIT(A) merely confirmed the order of the AO taxing the deposit into CGAS in the year of deposit ignoring the submissions of the assessee. Aggrieved by the order of ld.CIT(A), the assessee preferred an appeal before us. 9. The ld. AR for the assessee submitted that both the AO and ld.CIT(A) have incorrectly interpreted the provisions of section 54(2) of the Act and its proviso. He argued that their conclusion that the failure to purchase a residential property within 2 years or to construct within 3 years automatically renders the entire net sale consideration as taxable in the year of tr....
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....the assessee to utilise the deposited amount for purchasing or constructing a residential property. The taxability of the unutilized amount arises only after the expiry of this period, not before. 13. Further, the ld.AR submitted that the assessee has duly reflected the unutilized deposit of Rs. 6.45 crores as taxable capital gains in the return filed for AY 2020-21, without adjusting it against the Rs. 2.15 crores spent towards the flat purchased beyond the permitted timeframe. Thus, the core issue whether the amount deposited in the CGAS should be excluded from capital gains computation in AY 2017-18 stands clearly resolved in favour of the assessee based on the explicit language of Section 54(2) and its proviso. The mere fact that the....
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....deposited the entire amount of capital gain of Rs. 6.45 crores arising out of the sale of House property in CGAS in SBI. The assessee has sold the house property on 23.08.2016. We find that the assessee had time to purchase new house property within two years was 22.08.2018 (A.Y.2019-20) or to construct a house property within three years was 22.08.2019 (A.Y.2020-21) as per the proviso to section 54(2) of the Act. Since the assessee had not utilised the capital gain for purchase of new house property on or before 22.08.2018, he had left with the only option to build the house within 22.08.2019 or to offer the entire capital gain kept in the CGAS as long term capital gain by paying corresponding advance tax and filing the return of income fo....