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2018 (8) TMI 1809 - ITAT MUMBAICondonation of delay on adverse medical conditions being faced by assessee’s spouse. Although, the supporting documents, as placed before us are general in nature yet keeping in view the observation in Collector, Land Acquisition Vs. Mst. Katiji & Others [1987 (2) TMI 61 - SUPREME COURT] and keeping in view the fact that the assessee was an artist, we condone the same. Denial of deduction u/s 54 - denial of claim as investment beyond two years and non-furnishing of documentary evidences before lower authorities to support the investment - HELD THAT:- We find that the assessee earned certain capital gains during impugned AY and deposited the same in Long Term Capital Gain Account with PNB on 28/09/2010 i.e. before due date of filing of return of income for impugned AY. The material on record reveal that the assessee’s accounts were subjected to Audit and the due date of filing of return of income in his case, as extended by CBDT vide Order No.402/92/2006-MC (42 of 2010) dated 28/09/2010 was 15/10/2010. In such a case, the amount so deposited by him, in terms of provisions of Section 54(2), is deemed to be the cost of new asset and accordingly the assessee was entitled for deduction of the same during impugned AY. Proceeding further, we find that the case of the revenue is that the assessee did not utilize the amount so deposited for making investment in new House property within the stipulated time period. However, upon perusal of proviso to Section 54, we find that if the amount so deposited is not utilized in the prescribed manner, the same shall be charged u/s 45 as the income of the previous year in which the period of three years from the date of the transfer of the original asset expires. Upon due consideration of factual matrix, we find that the deduction u/s 54 for the impugned AY could not be denied to the assessee since all the conditions as envisaged therein was fulfilled by the assessee. - Decided in favour of assessee.
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