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2018 (10) TMI 1100 - AT - Income TaxExemption u/s 54F - short term capital gain from sale of depreciable assets u/s 50 - sale of factory shed - failure to deposit the net consideration in the capital gain account scheme within the time specified under section 139(1) - Held that:- As relying on case of DY COMMISSIONER OF INCOME TAX VERSUS HIMALAYA MACHINERY (P) LTD. [2012 (12) TMI 607 - GUJARAT HIGH COURT] the capital gain income earned by the assessee on the sale of depreciable assets being factory shed is eligible for exemption u/s 54F of the Act as it is long term capital assets as per the provision of Section 2(42A) of the Act. Thus, we have no hesitation in deleting the addition made by the AO by disallowing the exemption available to the assessee. Similarly, we also note that there is no dispute the net consideration was utilized by the assessee before filing the income tax return within the due date as specified under section 139(4) of the Act. Therefore, in our considered view the assessee is eligible for exemption under section 54F of the Act, though he failed to deposit the net consideration in the capital gain account scheme within the time specified under section 139(1) of the Act. See ASHOK KAPASIAWALA VERSUS THE ITO WARD-7 (1) , SURAT [2015 (10) TMI 2045 - ITAT AHMEDABAD] - decided in favour of assessee
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