Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 243 - AT - Income TaxDisallowance of deduction u/s. 54B - Belated filing of return - investments in purchase of agricultural land for claiming the benefit of exemption u/s 54B was made by the assessee after the due date of filing of return u/s 139(1) i.e. 31.10.2006 - Held that:- There is no dispute about the fact that the return of income has been filed by the appellant within sub section 4 of 139 of the IT Act. The Assessing Officer has erred in disallowing the exemption on the long term capital gain of the appellant uls 548 of the I.T. Act of ₹ 69,80,300/-. There is no dispute about the fact that the whole of long term capital gain of ₹ 1,65,27,403/- has been invested by the appellant in the purchase of another agricultural land within two year from the sale of the capital asset i.e. agricultural land. The sale of the asset having been taken place on 13-1-2006, falling in the previous year 2006-07, the return could be filed before the end of relevant assessment year 2007-08, i.e., 31-3-2007. Thus, sub-section (4) of section 139 provides extended period of limitation as an exception to sub-section (1) of section 139. Sub-section (4) is in relation to the time allowed to an assessee under sub-section (1) to file return. Therefore, such provision is not an independent provision, but relates to time contemplated under sub-section (1) of section 139. Therefore, such sub-section (4) has to be read along with sub-section (1). Due date for furnishing the return of income as per section 139(1) is subject to the extended period provided under sub-section (4) of section 139. Therefore, CIT(A) was of the considered opinion that the amount of ₹ 69,80,300/- has to be exempted uls 54B of the I T Act and therefore the Assessing Officer was rightly directed to delete the addition of ₹ 69,80,300/-., which does not need any interference on our part, hence, we uphold the same. - Decided against revenue
|