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2013 (10) TMI 746 - AT - Income TaxBenefit of exemption u/s 54F of the Income Tax Act - In order to avail the exemption in respect of a sum of Rs. 1,22,23,250/- u/s. 54F(4) of the Act, the assessee on 30.7.2008 issued instruction to the Syndicate Bank, Hauz Khas, New Delhi to transfer the aforesaid amount of Rs. 1,22,23,250/- from the savings bank account maintained by the assessee in the aforesaid branch to the special capital gain account maintained with the same branch of the said bank - Assessee has furnished a certificate issued by the bank on 15.12.2010 wherein it has been confirmed that instruction has been received from the assessee on 30.7.2008 for transfer / deposits of funds to the special capital gain account - Evidence of deposits was not filed alongwith the return of income – Held that:- Return of income was filed in electronic form. The return in electronic mode does not permit filing of any documents/ annexures therewith and accordingly, the assessee was prevented by law to file a certificate of deposits alongwith return of income - Evidence of deposits was filed by the assessee during the course of assessment proceedings - The bank had acted upon the instruction of the assessee on 31.7.2008 to deposit the money in special capital gain account - Assessee has duly complied with the requirements of law - Return of income was furnished in electronic form. The return of electronic mode does not permit filing of any documents/ annexures therewith. Denial of claim of deduction/exemption under the Act merely because the return of income was not accompanied by the prescribed documents / certificate, is not appropriate - Requirement is only directory and filing of necessary document/certificate in the assessment proceedings would be in compliance with law – Decided in favor of Assessee. Denial of exemption u/s 54F on the ground of payment made by M/s Capital Advertising Pvt. Ltd. wherein the assessee was Director and not by the assessee himself – Held that:- Assessee has duly made the arrangement for booking of the flat and necessary documentation were made by the assessee in his individual capacity. Only the payment of Rs. 55,70,800/- was done on behalf of the assessee by M/s Capital Advertising Pvt. Ltd. and subsequently, the assessee had duly reimbursed the company amount involved - Section 54F does not require one to one correlation between the capital gain arising out of transfer of long term capital asset and utilization thereof for purchase/construction of residential house - Exemption to the extent of Rs. 55,70,800/- cannot be denied on the facts and circumstances of the case – Decided in favor of Assessee.
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