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2013 (11) TMI 167 - AT - Income TaxDeduction u/s 54(2) – Due Date of Filing Return u/s 139(1) - Belated filing of return Return – Whether the CIT(A) erred in directing the Assessing Officer to allow claim of deduction u/s 54 of the Act even though the assessee had not invested the entire capital gain within the due date of filing of return of income u/s 139(1) of the Act as mentioned in section 54 of the Act - Held that:- The amount of the capital gain utilised for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, means the date as prescribed not only u/s.139(1) but also u/s .139(4) of the Act - Thus, in the instant case, as the assessee invested (paid) the entire amount before filing the return of income (which may be u/s 139(4) of the Act), the assessee was eligible for deduction u/s .54 of the Act - The assessee was eligible for deduction u/s 54 of the Act - The Assessing Officer was directed to compute the taxable long term capital gains by allowing deduction but restricted to the amount of long term capital gains u/s 54 of the Act. Following CIT v. Ms. Jagriti Aggarwal [ 2011 (10) TMI 279 - PUNJAB AND HARYANA HIGH COURT] and Mrs. Esther Christopher Mascarenhas v. ITO [2010 (12) TMI 217 - ITAT, MUMBAI ] - due date for furnishing return of income as per section 139( 1) was subject to extended period provided under sub-section (4) of section 139 and, if a person had not furnished return of previous year within time allowed under sub-section (1), assessee could file return under sub-section (4) before expiry of one year from end of relevant assessment year - section 54 deduction could not be denied to assessee on this count. The date of filing the return u/s.139 of the Act has wide scope - The return can be filed u/s.139(1) or u/s.139(4) of the Act - Both the returns i.e. either filed u/s.139(1) or u/s.139(4) of the Act were legally valid and accepted returns - There was no difference between these two returns (except for charging interest u/s 234B and allowing certain deductions or carrying forward of losses) – Decided against Revenue.
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