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2018 (6) TMI 1740 - ITAT JAIPURDisallowance of the deduction u/s 54 against the Long Term Capital Gain - Whether assessee has acquired the new asset being residential house before the due date of filing the return of income U/s 139(4) and acquiring the new asset within the stipulated period of 2 year /3 years from the date of transfer of the existing asset? - as argued appellant had invested the Long Term Capital Gain in purchase of residential house property on 23.09.2012 (within the stipulated time of 3 years from the date of transfer.” - HELD THAT:- There is no dispute that the provisions of section 54 (2) of the Act stipulates the time period for making the investment in acquiring the new asset. In case the assessee has not made the investment in the new asset before the date of filing of return of income then the amount of capital gains is required to be deposited in capital gain accounts scheme on the date of filing of return U/s 139 and not later than due date of filing of return U/s 139(1). Sub-section (2) stipulates that in case the assessee has not acquired new asset before the date of the filing of return of income U/s 139 of the Act then the amount of capital gain is required to be deposited in the capital gain account scheme before the date of filing of return and latest by the due date of filing of return U/s 139(1). Following the decision of Hon’ble Punjab and Haryana High Court in case of CIT vs. Ms. Jagrity Agarwal [2011 (10) TMI 279 - PUNJAB AND HARYANA HIGH COURT], decision of Hon’ble Gauhati High Court in case of CIT vs. Rajesh Kumar Jalan [2006 (8) TMI 126 - GAUHATI HIGH COURT] as well as the decision of the Coordinate Bench of this Tribunal in case of Virendra Singh vs. ITO [2016 (3) TMI 823 - ITAT JAIPUR], we hold that when the assessee has acquired the new asset being residential house before the due date of filing the return of income U/s 139(4) of the Act then the substantial condition of acquiring the new asset within the stipulated period of 2 year /3 years from the date of transfer of the existing asset has been complied with and accordingly, the assessee is eligible for deduction U/s 54 - Appeal of the assessee is allowed.
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