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2016 (1) TMI 656 - AT - Income TaxEntitlement to deduction u/s 54F - as per AO assessee has not deposited the sale proceeds into capital gains account scheme before the due date for filing of return of income - CIT(A) restricted the deduction to the extent of amount paid within the due date for filing of return of income under section 139(4) - Held that:- deduction under section 54 / 54F cannot be denied simply because sale proceeds were not deposited into capital gains account scheme in the bank when in fact the said sale proceeds were utilized for purchase or construction of residential property. In the case on hand, the Assessing Officer as well as Commissioner of Income Tax (Appeals) partially denied the exemption under section 54F of the Act on the ground that assessee has not deposited the sale proceeds into capital gain account scheme which is not justified in view of the various decisions mentioned above. Thus, we direct the Assessing Officer to allow the claim of the assessee and recompute the capital gains in accordance with law, after providing adequate opportunity to the assessee. Cost of improvement disallowed - Held that:- This has to be examined by the Assessing Officer with reference to the bills produced by the assessee and decide the issue in accordance with law. Thus, we restore the issues back to the file of the Assessing Officer to decide the same afresh in accordance with law.
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