TMI Blog2017 (5) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... The Assessing Officer shall reconsider the issue afresh and find out whether the assessee has invested the money in construction of property after getting approval of Panchayat Union Disallowance of amount invested in REC Bonds - Held that:- Admittedly, the property was sold on January 10, 2011 and the assessee deposited a sum of ₹ 50 lakhs on March 31, 2011 and another sum of ₹ 20 lakhs on June 30, 2011 in REC Bonds. REC Bond, admittedly, is a capital gain bond. Since the deposit was made within the due date for filing of the return of income, this Tribunal is of the considered opinion that the Commissioner of Income-tax (Appeals) has rightly allowed the claim of the assessee. Therefore, this Tribunal do not find any reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e return of income. According to the learned representative, the assessee has invested in residential property to the extent of ₹ 22.42 lakhs. In fact, the approval was obtained on July 21, 2011 from the Panchayat Union. Therefore, the disallowance made by the Assessing Officer is not justified. 3. On the contrary, Shri N. Madhavan, the learned Departmental representative, submitted that the assessee admittedly sold a property on January 10, 2011. The due date for filing of return for the assessment year 2011-12 is July 31, 2011. The assessee obtained the approval from the Panchayat Union on July 21, 2011. Therefore, the assessee could not have constructed the house before July 31, 2011. Hence, the assessee has to naturally deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red opinion that the matter needs to be reconsidered by the Assessing Officer. Accordingly, the orders of the authorities below are set aside and the entire claim of deduction under section 54F of the Act is remitted back to the file of the Assessing Officer. The Assessing Officer shall reconsider the issue afresh and find out whether the assessee has invested the money in construction of property after getting approval of Panchayat Union and thereafter decide the issue afresh in accordance with law after giving a reasonable opportunity to the assessee. 5. Now coming to the appeal of the Revenue in I. T. A. No. 378/Mds/2015, the only issue arises for consideration is with regard to the disallowance of ₹ 50 lakhs and ₹ 20 lakh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... January 10, 2011 and the assessee deposited a sum of ₹ 50 lakhs on March 31, 2011 and another sum of ₹ 20 lakhs on June 30, 2011 in REC Bonds. REC Bond, admittedly, is a capital gain bond. Since the deposit was made within the due date for filing of the return of income, this Tribunal is of the considered opinion that the Commissioner of Income-tax (Appeals) has rightly allowed the claim of the assessee. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. 9. In the result, the assessee's appeal in I. T. A. No. 327/Mds/2015 is allowed for statistical purposes and the Revenue's appeal in I. T. A. No. 378/Mds/2015 is dismissed. 10. O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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