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2017 (12) TMI 1656 - AT - Income TaxExemption u/s 54 - non adherence to mandate of Sec.54F(4) - entire amount of capital gain was not utilized for the purchase of residential flat till the time of filing of return u/s 139(1) - Held that:- It is an undisputed fact that assessee has earned long term capital gains on sale of flat which was sold on 30.03.2009 and the entire amount of capital gain is at ₹ 1,26,41,650/- was not utilized for the purchase of residential flat till the time of filing of return u/s 139(1) i.e., upto 29.07.2009. The new flat was purchased by the assessee on 26.04.2010 i.e., after one year from the date of transfer of original flat. It is also an undisputed fact that the capital gain earned on sale of flat was not deposited in the specified bank account till the time of purchase of new flat. On the issue of deposit of unutilized capital gains in specified bank account, we find that in the case of Humayun Suleman Merchant (2016 (9) TMI 70 - BOMBAY HIGH COURT) has held that the mandate of Sec.54F(4) of the Act is clear that the amount which has not been utilized either in purchase / construction of house before filing return of income has to be deposited in the account duly notified by Central Government for claiming exemption. We are therefore of the view that in the present case, AO was justified in denying the claim of deduction u/s 54 of the Act. It is a settled law that the decisions of High Courts are binding on the Sub-ordinate Courts, Authorities and the Tribunals situated within its jurisdictional territory. - Decided against assessee.
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