Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 23 - AT - Income TaxLiability for capital gain tax - sale of land - capital asset in terms of section 2(14)(iii) - distance of the land from municipal boundary - Held that:- It is notable that the assessee itself vide its reply furnished the computation of capital gains and investments in purchase of various properties and in reconstruction of residential house so as to claim exemption u/s. 54B and 54F of the Act, which itself alludes that the property sold by the assessee was nothing else but a capital asset. On this premise only, there is sharp contradiction between the initial claim of land being beyond 8 kms from Municipal limit and the claim of exemption u/s. 54B and 54F on long term capital gain. Moreover, the certificates obtained by the AO in remand proceedings with respect to the impugned land of assessee unequivocally speak against the assessee and the same have not been rebutted by the assessee. Accordingly, the conclusion of capital asset sold by assessee, as observed by the ld. Authorities below, deserves to be sustained. Whether the deduction u/s. 54B and 54F claimed by the assessee is available with reference to the capital gain invested in purchase of agriculture land subsequent to the due date of filing of return of income - Held that:- There is no ambiguity in the relevant provisions of the Act that the assessee was legally obliged to appropriate the amount towards purchase of new asset before due date of filing the return, in absence of which the assessee would not be entitled to claim exemption under the provisions of the Act. The appellant has claimed to have invested ₹ 1,07,21,900/- in purchase of agricultural land on 15.11.2007 and on 22.04.2008, i.e., after the due date of filing the return of income without keeping the same deposited in Capital Gain Account. Therefore, the ld. Authorities below are justified in disallowing the exemption on the investment made beyond the due date of filing the return as the said amount was not appropriated by depositing the same in the capital gain accounts scheme as per provisions of the Act. Similarly, as per provisions of section 54F(1) of the Act, the case of construction of a house, deduction available with reference to the amount invested in 3 years subsequent to the date of sale of the asset. In the instant case, since the amount claimed to be invested in the reconstruction of the house was prior to one year from the date of sale, deduction u/s. 54F of the Act was not available to the assessee, as no amount was claimed to have been invested in reconstruction of house subsequent to the date of sale before the Assessing Officer. - Decided against assessee.
|