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2016 (12) TMI 492 - ITAT MUMBAIClaim of exemption u/s 54 - denial of claim as assessee failed to deposit the sale proceed of the property sold in the notified capital gain account maintained with the bank as per capital gain scheme as also the assessee failed to file necessary evidences towards construction of new residential house at Rajasthan - Held that:- We have observed that the ratio of the decision of the Hon’ble Bombay High Court in the case of Humayun Suleman Merchant [2016 (9) TMI 70 - BOMBAY HIGH COURT] is directly applicable and assessee will be entitled to claim exemption u/s 54 of the Act for all the amount utilized for the construction of new residential house at Rajasthan till the date of filing of return of income on 18.11.2008 which was filed within time stipulated u/s 139 of the Act. In the interest of justice keeping in view facts and circumstance of the case, this matter needs to be set aside and restored to the file of the AO for making necessary verification as to the amount of exemption which the assessee is entitled for exemption u/s 54 of the Act in accordance with the ratio of decision laid down by the Hon’ble Bombay High Court in the case of Humayun Suleman Merchant (supra) and in accordance with law, by the AO after verification of the evidences - Decided in favour of assessee for statistical purposes.
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