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2017 (1) TMI 1444 - AT - Income TaxNon-granting of exemption u/s. 54F - assessee had not deposited unutilized capital gains in the capital gains account scheme before due date of filing the return of income which falls on 31.07.2012 - time limit for assessee to invest - Held that:- The similar issue had also come up before the Honbie Guwahati High Court in the case of CIT V/s Rajesh Kumar Jalan (2006 (8) TMI 126 - GAUHATI High Court) as held that if the assessee fulfils the condition for exemption u/s 54 within the extended time of filing of return u/s 139(4) of the Act, the assessee is entitled to exemption u/s 54 of the Act. In view of above, we hold that the assessee is entitled to claim deduction u/s 54F of the Act for utilization of sale consideration for investment in new residential property within due date as stipulated u/s 139 of the Act. Hence, Grounds of appeal taken by assessee are allowed by reversing the orders of authorities below.” So far as, the time limit for assessee to invest the amount of capital gains in purchase/construction of new residential asset or investment in capital gains scheme u/s.54F of the Act is concerned, it has been affirmed by the High Court that “due date” refers to the “extended due date” u/s.139(4) of the Act. In view of this, we remit the issue in dispute to the file of AO for the purpose of verifying the records, whether the residential building had come into existence within specified period, i.e. three years from the transfer of original asset. The assessee is directed to produce relevant documentary evidence before the AO to show that the residential building had come into existence within three (3) years after the date of transfer of original asset. The AO after verifying the facts, grant necessary deduction in accordance with law. Appeal of the assessee is partly allowed for statistical purposes.
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