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2016 (1) TMI 1254 - AT - Income TaxDenial of deduction u/s. 54F - due date of filing of return of income by the assessee u/s. 139(4) or u/s. 139(1) - whether entire amount of capital gains arising out of sale of residential house property invested in acquiring a new residential flat before the due date of filing of return u/s. 139(4) - Held that:- The admitted facts are that the assessee sold a residential house property during the FY 2006-07 for a sum of ₹ 50 lacs and purchased an under-construction residential flat in Unitech, Rajarhart, Kolkata by paying booking amount of ₹ 4,19,072/- as application money on 19.08.2006. The assessee earned Long Term Capital Gains on this transaction at ₹ 34,94,896/-. The assessee invested a sum of ₹ 19,35,824/- in purchase of an under-construction residential flat up to 31.07.2007 i.e. the due date of filing of return of income by this assessee. The assessee also invested total sum of ₹ 38,70,276/- in purchase of an under-construction residential flat up to 31.03.2009 i.e. the date of filing of return of income by this assessee u/s 139(4) of the Act. That means the assessee has invested the entire long term capital gain of ₹ 34,94,896/- only up to 31.03.2009 i.e. the due date of filing of return of income by the assessee u/s. 139(4) of the Act and not u/s. 139(1) of the Act. See Fatima Bai Vs. ITO [2008 (10) TMI 563 - KARNATAKA HIGH COURT] Assessee having utilized the entire capital gains by purchasing a house property before the extended due date u/s. 139(4) of the Act, the assessee is eligible for exemption u/s. 54 of the Act. - Decided in favour of assessee
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