2026 (5) TMI 1002

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...., 1961 ["the Act"] for Assessment-Year ["AY"] 2016-17, the assessee has filed this appeal on following grounds: "Ground 1. That the disallowance of exemption of Rs. 1,11,25,790/- claimed u/s 54, as made by the learned AO and 1 upheld by the honourable CIT(A) be held to be bad in law and unjustified. It is respectfully prayed that the said exemption be held to be allowable and accordingly be allowed. Ground 2. In the alternative and without prejudice to the ground stated above, the disallowance made by the learned AO and upheld by the honourable CIT(A) be held to be high and unreasonable and be suitably reduced. Ground 3. The appellant craves leave to add, amend OR alter any Ground of Appeal before OR during the co....

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....ital gain at Rs. 35,75,441/-, which shows that the AO allowed exemption of Rs. 1,11,25,790/- u/s 54 qua the investment in purchase of a new house in Bangalore. Further, in Para No. 8 of assessment-order, the AO has made following noting: "8. In response to the show cause notice, the assessee replied vide e-proceeding order sheet entry dated 19/11/2018 and submitted the following document namely (1) statement of capital gain (2) computation sheet of total income (2) Sale deed of property (a residential house no. 4, MP Nagar Zone-2 Bhopal) sold on 23/12/2015(3) Purchase deed of property (a residential house no. 4, MP Nagar Zone-2, Bhopal) purchased on 04/03/1992(4) Purchase deed of property (three bedroom apartment, bearing 04 on the....

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....disputed facts giving rise to the controversy are as under: (i) The assessee sold a (jointly owned) residential house situated at No. 4, MP Nagar, Zone-2, Bhopal on 23.12.2015 and earned capital gain. (ii) The assessee re-invested a sum of Rs. 1,11,25,790/- by purchasing a residential house situated at Bangalore on 06.10.2016, which was after due date for filing of return u/s 139(1). (iii) The assessee did not make any deposit in Capital Gain Deposit Scheme before due date u/s 139(1). 6. Thus, the assessee has made new investment within the prescribed period of 2 years in section 54 and this fact cannot be disputed by revenue. However, the sole reason of denial of exemption u/s 54 is that the assessee did not f....