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2019 (1) TMI 875 - AT - Income TaxComputation of income from long term capital gains in the hands of the assessee - denial of exemption u/s 54B - agriculture land - reinvestment in another agricultural land within a period of two years, but failure to deposit in the capital gains scheme account - Held that:- In Humayun Suleman Merchant Vs. CCIT [2016 (11) TMI 606 - BOMBAY HIGH COURT] turn relies on the decision of CIT Vs. Rajesh Kumar Jalan (2006 (8) TMI 126 - GAUHATI HIGH COURT) which laid down the proposition that amounts subject to capital gains on sale of capital asset for the purpose of exemption, had to be utilized before the date of filing the return of income and since the same was not utilized for the purpose of investment in construction of the new house nor was deposited in the capital gains scheme account; hence, the assessee was held to be not entitled to the claim of deduction under section 54F of the Act. It may be pointed out that in the aforesaid case, the said deduction was restricted to the investment in the new asset at ₹ 35 lakhs. Relevant findings of the Hon’ble High Court are reproduced by the CIT(A) the appellate order which are being referred to but not being reproduced for the sake of brevity. The said proposition laid down in the case of Shri Vilas Balram Patil [2017 (12) TMI 1656 - ITAT PUNE] the claim of deduction under section 54 of the Act was denied to the assessee as he had not deposited the amount in the capital gains scheme account by the due date of filing the return of income. Thus hold that the assessee is not entitled to claim of deduction under section 54B of the Act as the assessee has failed to deposit the unutilized amount of capital gains in the capital gains scheme account by the date of filing of return of income. Since this issue is settled by the Hon’ble jurisdictional High Court, hence, the matter is being decided ex parte the assessee. Grounds of appeal raised by the assessee are thus dismissed.
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