Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (1) TMI 1738 - ITAT CHENNAILTCG - exemption u/s 54F - time period allowed for constructing a new residential house - As per DR assessee admittedly did not deposit the unutilized amount in an account under Capital Gains Accounts Scheme and therefore was not eligible for claiming deduction u/s. 54F - Whether exemption could given under Section 54F of the Act where investment in a new residential house was made within three years from the date of transfer of the asset giving rise to the capital gains, even when the assessee had not deposited the unutilized amount in Capital Gains Accounts Scheme, before the due date prescribed for filing of return u/s. 139(1)? - HELD THAT:- As decided in K. Ramachandra Rao [2015 (4) TMI 620 - KARNATAKA HIGH COURT] that once construction of a new residential house was completed within the three years period, failure of the assessee in not depositing the unutilized sale consideration in a bank account under Capital Gains Accounts Scheme, during the interregnum was not fatal to a claim u/s. 54F(1) of the Act. If assessee not investing the capital gains either in purchasing the residential house or in constructing a residential house within the period stipulated in s. 54F(1), if the assessee wants the benefit of s. 54F, then he should deposit the said capital gains in an account which is duly notified by the Central Government We are therefore of the opinion that assessee was eligible for claiming exemption u/s. 54F for the full amount utilized by it for construction of a new residential house within three year period allowed u/s. 54F(1). However, whether assessee had completed the residential house within the said period and how much was invested by the assessee within the said period for such residential house, requires verification by the ld. AO - We therefore set aside the orders of the authorities below and remit the issue back to the file of AO for the limited purpose of verifying the quantum of investment made by the assessee for construction of the new residential house within the period mentioned in Sec. 54F(1) of the Act and allow such deduction, if the construction of the house was completed within a said period. Appeal of the assessee is allowed for statistical purposes.
|