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2016 (5) TMI 1373 - AT - Income TaxDenial of exemption u/s.54F - nom deposit in capital gains account scheme before due date u/sec. 139(1) - Held that:- As decided in the case of CIT vs. R.L. Sood (1999 (9) TMI 27 - DELHI High Court) were the date of agreement to purchase should be taken as the date of purchase. On applying the ratio to current circumstances, the assessee entered into agreement with builder for undivided share of land and construction agreement on 03.02.2011 which is very much before provisions of Sec. 139(4) of the Act. In the case of Jagtar Singh Chawla of Punjab [2013 (4) TMI 499 - PUNJAB AND HARYANA HIGH COURT] the assessee has paid substantial amount for purchase of residential property before the extended due date of filing of return and the assessee was eligible for exemption and not liable to pay any capital gain tax. Considering the factual aspects, genuiness of transactions and beneficial and liberal aspects of the provisions and the judicial decisions relied by the assessee. We are of the opinion that assessee complied the conditions and is eligible for exemption u/s.54F of the Act. We set aside the order of CIT(Appeals) and direct AO to grant exemption u/s.54F of the Act on the remaining construction cost which was invested in the residential property before due date u/s.139(4) of the Act and allow the grounds of the assessee.
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