2013 (4) TMI 499 - PUNJAB AND HARYANA HIGH COURT

Exemption u/s 54F - Sale of gricultural land and residential house - The assessee purchased a residential house from the sale proceeds so received - Held that:- subsection(4) of Section 139 of the Act is in fact a proviso to Section 139(1) of the Act - Therefore, since the assessee has invested the sale proceeds in a residential house within the extended period of limitation, the capital gain is not payable.

The judgments in Rajesh Kumar Jalan’s case (2006 (8) TMI 126 - GAUHATI High Court) and Fathima Bai’s case (2008 (10) TMI 563 - KARNATAKA HIGH COURT ) were referred too.

In the present case, the assessee has proved the payment of substantial amount of sale consideration for purchase of a residential property on or before 31.3.2008, that is within extended period of limitation of filing of return. Only a sum of Rs.24 lacs was paid out of total sale consideration of Rs. Two Crores on 23.4.2008, though possession was delivered to the assessee on execution of the power of attorney on 30.3.2008 - Since the assessee, has acquired a residential house before the end of the next Financial Year in which sale has taken place, therefore, the assessee is not liable to pay any capital gain. Such is the view taken by the Income Tax Appellate Tribunal - Decided in favor of assessee.