TaxTMI 
TaxTMI 
2025 (9) TMI 1631
X X X X Extracts X X X X
X X X X Extracts X X X X
....round of appeal on record. 2. The facts of the case in brief are that the information was received from I & CI Wing of the Income Tax Department that during the A.Y. 2012-13, the assessee had sold a property in Perambur Barracks, Chennai-12 for a consideration of Rs. 5.00 crores and had claimed exemption under Section 54 of the Income Tax Act, 1961 (in short, the Act). Several notices under Section 142(1) and 143(2) were issued from time to time to substantiate the claim of deduction made U/s 54 of the Act. However, the assessee did not reply to the said notices despite giving several opportunities. The Assessing Officer, therefore, passed the assessment order under Section 144 of the Act and denied the exemption under Section 54 of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ilised was lying in the Capital gains scheme account and I have not utilised the same for any other purpose. It remains in the said account till 2021. I am not aware of the deeming fiction. As I am alone after my mother's death, I was not in a frame of mind to go to the auditor and clarify. I did not have knowledge of the 3 years rule before which I should utilise. However I would only submit that I have not misused the said funds nor withdrawn for the same. It was kept blocked in the said account. Further I have paid the entire tax due with penalty of Rs. 76,55,257 on 2710/2021. There is no suppression of income or providing in accurate particulars. It is only a deemed income for which due to my interest in further investment and not k....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ar. Since in this case, the assessee had not utilized the amount of Rs. 1,74,14,620/- within the prescribed period of 3 years, kept in Capital Gain Accounts Scheme, the amount is to be treated as the Long term capital gains in the hands of the assessee. The A.O. had rightly taxed as such. Further, assessee's contention of not filing further appeal and payment of the income taxes genuinely are no ground for relief from penalty. 6. It is also worthwhile to mention here that the above arrangement by the assessee in respect of which addition has been made was detected only during the course of the reopening assessment proceedings which otherwise would have escaped assessment and this amounts to concealing the particulars of income.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ions. Deduction under Section 54EC for Rs. 50.00 lakhs and Section 54 proposed investment in residential house property. A sum of Rs. 2.50 Crores was deposited in an earmarked capital gain scheme account within the due date of filing the return. 3. Hence the deduction claimed in the Asst year 2012-13 is in order as the preconditions for the deduction has been satisfied. 4. However, he was not able to utilize the entire amount earmarked for reinvestment. The flat was purchased from the builder to whom he had sold the entire land. He had originally planned to buy two flats adjacent to each other and combine the same as one flat. Due to certain disputes with the builder, he had not been allotted two flats and only one flat wa....