TMI Blog2020 (1) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the case rather the judgment has cited above are clearly applicable to the facts and circumstances of the present case wherein it has been held that even if the sale consideration received on transfer of asset is deposited into the capital gain bank account before the extended date of filing the Return of Income u/s.139(4) of the Act, the deduction u/s.54F of the Act cannot be denied. Since from the facts of the present case the amounts has already been deposited by the assessee in the capital gain account with the bank before the due date for filing Return of Income u/s.139(4) of the Act, thus in this eventuality the deduction u/s.54F of the Act cannot be denied to the assessee and thus we allow this ground and set-aside the order of the ld.CIT(A) and direct the AO to give deduction to the assessee u/s.54F of the Act, accordingly effective ground of the assessee is allowed. - I.T.A No.3039/AHD/2014, 3040/AHD/2014 (Assessment Year: 2010-11) - - - Dated:- 13-12-2019 - SHRI SANDEEP GOSAIN, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER Assessee by Shri Hiren M. Diwan CA Revenue by Smt. Anupama Singla Sr. DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter if the deposits of unused sale consideration of the property is made into the capital gain bank account before expiry of time limit provided in section 139(4) of the Act, then, also the deduction u/sec.54F of the Act cannot be denied in respect of such deposits of unused sale consideration deposited into the capital gain bank account after the expiry of time limit provided in section 139(1) of the Act but before the expiry of time limit provided in section 139 (4) of the Act. (c) Please note that in the appellant's case, the time limit for filing the Return of Income for the current Assessment Year u/sec. 139(1) of the Act is 31s' July 2010. However, by virtue of provisions of section 139(4) of the Act, the appellant can file his Return of Income for the current Assessment Year on or before 31.03.2012 As stated by the Id. A.O. the appellant deposited the amounts of ₹ 16,06,043/- and Rs.,20,00,000/- into the capital gain bank account 10.01.2011 and 18.03.2011 respectively i.e. before the time limit provided for filing of Return of Income by the appellant u/sec.139(4) of the Act being 31.03.2012. (d) It is, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f making deposits of unused sale consideration into the capital gain bank account should be treated as complied with by the appellant in respect of the sale consideration of ₹ 1,20,00,000/- referred to above. (i) In support of my above submission, reliance is placed on the following judgments: a) S. Gopal Reddy V/s CIT (1990) 181 ITR 378 (AP). Gist of the judgment enclosed at Pages No. 19 20 b) Chanchal Kumar Sircar V/s ITO (2012) 16 ITR (Trib) 91 (Kolkata). Gist of the judgment enclosed at Pages No.21 22. (j) Kindly note that the remaining sum of 6,06,043/- which was deposited by the appellant into the capital gain bank account on 10,01.2011 i.e. after the time limit provided in section 139(1) of the Act for the purpose of filing Return of Income in the appellant's liquidity situation improved the appellant immediately on 10.01.2011 deposited the sum of ₹ 16,06,043/- into the capital gain bank account on 10.01.2011. (k) It is, therefore, prayed that the following the above judgments also the impugned rejection of claim for deduction u/sec.54F of the Act made by the Id. A.O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section(1) of section 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset. 2.8 From the above it is abundantly clear that the intention of the legislature is to allow deduction u/s.54F in respect of only that amount which has been deposited in the capital gain scheme account by the date specified in Sec. 139(1). However, in case any amount has been spent before the filing of return u/s. 139, be it 139(1) or 139(4), the said amount would also be considered for deduction. The words of the section are loud and clear. It specifically states that such deposits being made in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Shelcon Properties (P) Ltd., (2014) 57 (1) ITCL 389(Cal.-HC). Therefore the first question has to be answered in the negative and against the assessee. 7. After having gone through the arguments of the Counsel at length and after perusal of material placed on record, we noticed that the assessee has also filed statement showing details of events which are necessary for adjudicating the controversy between the parties, the same is reproduced below: Sr.No. Particulars Date Amount (Rs.) 1. Share in sale price of plot no.134-A and date of sale 26-11-2009 4,69,24,500 2. Share in sale price of plot no.134-B 22-12-2009 3,39,95,500 3. Share in sale price of plot no.134-C 01-02-2010 3,31,06,500 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per the facts the assessee had received total sale consideration at different dates amounting to ₹ 11,33,26,500/- and had deposited ₹ 11,36,24,417/-. In the Capital Gain Account with the bank on 31.07.2010, 10.01.2011 and 18.03.2011. 9. The due date for filing of Return of Income u/s.139(1) of the Act was 31.03.2010 and the due date for filing of Return of Income u/s.139(4) of the Act was 31.03.2012. Admittedly, as per the facts as mentioned above, the assessee had deposited the entire amount rather little more than that in the capital gain account with the bank before the due date for filing of return of income u/s.139(4) of the Act which was on 31.03.2012. The ld.CIT(A) has admitted the said fact in para no.2.6 of its order that the amount was deposited by the assessee within the due date specified u/s.139(4) of the Income Tax Act, but had rejected the claim of the assessee by holding that this amount ought to have been deposited not beyond the due date specified in section 139(1) of the Income Tax Act and in this respect had relied upon the decision of Hon'ble Apex Court in the case of Smt.Tarulata Shyam Vs. CIT 108 ITR 345. We have gone throug ..... X X X X Extracts X X X X X X X X Extracts X X X X
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