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2018 (6) TMI 885 - AT - Income TaxDisallowance of exemption u/s 54F - can the assessee be denied the exemption u/s 54F when assessee failed to deposit unutilized funds in a capital gains account scheme before filing the return of income u/s 139(1)? - reopening of assessment - Held that:- As assessee has not filed the return of income and filed the return of income only after receipt of notice u/s 148 of the IT Act but he has filed the return of income within the time allowed u/s 139(4) - As decided in KAREEMSONS PVT. LIMITED VERSUS COMMISSIONER OF INCOME-TAX [1991 (8) TMI 28 - KARNATAKA HIGH COURT] it is a right given to the assessee u/s 139(4) by the Act cannot be lost merely because proceedings were initiated u/s 147 of the Act. Thus assessee has filed return u/s 139(1) within the time allowed u/s 139(4) - at the time of filing of return, assessee has already utilized the funds in construction of the building - therefore, as per the conditions laid down u/s 54F (4) of the Act, assessee should deposit unutilized funds in bank whereas assessee has already utilized portion of the sale consideration in construction of the house before filing return of income - hence the claim u/s 54F cannot be denied under these circumstances - Decided in favor of assessee.
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