2018 (10) TMI 2069

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....IT Act, 1961. 2. That under the facts and circumstances of the case, the ld CIT(A) is not justified in sustaining levy of capital gains at Rs. 27,86,700/-. 3. The assessee craves to add, amend, alter, insert, withdraw any grounds of appeal before disposal of the appeal." 2. The only issue arises in this appeal of the assessee is regarding disallowance of claim U/s 54 of the Income Tax Act, 1961 (in short the Act). 3. The assessee is an individual and sold an immovable property on 27/2/2011 for a consideration of Rs. 1.50 crores. The assessee was having 1/5th share in the said property bearing F-29, Jamna Lal Bajaj Marg, F-Block, C-Scheme, Jaipur, accordingly the assessee's share in the sale consideration is Rs. 30.00....

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....ndra Rao in ITA No. 47 of 2014 decision dated 14/07/2014. (3) Sri Nipun Mehrotra Vs. ACIT (2008) 297 ITR 110. (4) ITA No. 272/Chd/2017, Mrs. Seema Sabharwal Vs ITO order dated 05/02/2018. 6. On the other hand, the ld DR has submitted that it is a mandatory condition that if the assessee has not invested the sale consideration in purchase of new house before due date of filing the return U/s 139(1) of the Act then the said amount is required to be deposited in capital gain account scheme. The assessee has undisputedly not deposited the amount in the capital gain account scheme and therefore, the claim of deduction U/s 54/54F of the Act is not allowable. He has relied upon the orders of the authorities below. 7. We hav....

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....: "5. As regards the non deposit of the amount in the Capital Gain Account Scheme, we note that the assessee has sold the agricultural land on 30th November, 2012 and the house was purchased on 30.10.2014. Therefore, the investment made by the assessee is within two years from the sale of the existing asset and is not beyond the stipulated period as provided under section 54F of the Act. The only objection raised by the AO and ld. CIT(A) is non deposit of amount in the Capital Gain Account Scheme. However, when the assessee has invested the amount within the stipulated period as provided under the provisions of section 54F, then the substantial requirement as per section 54F(1) is satisfied. The Hon'ble Madras High Court in the cas....

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....(1). The proviso to Section 54F puts an embargo on the application of Section 54F to cases which are mentioned in the said proviso. That is to be eligible for the benefit under Section 54F(1) the assessee should not be owning more than one residential house other than the new asset acquired or he should not purchase any residential house other than the new asset within a period of one year after the date of transfer of residential asset or constructs any residential house other than the new asset within a period of three years after the date of transfer of the residential asset. In the entire scheme there is no prohibition for the assessee putting up construction out of sale construction received by such transfer of a site which is owned by....