Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (9) TMI 349 - AT - Income TaxLevy of penalty u/s 271(1)(c) - denial of claim of exemption under section 54 - exemption allowable for purchase of one residential house only - amount not deposited in capital gain account - whether s ale consideration is utilised for the construction or purchase of a new residential house before due date of filling of return under section 139(4)? - HELD THAT:- Due date for furnishing return of income according to Section 139(1) of the Income Tax Act, 1961 was subject to extended period provided under Section 139(4) of the Income Tax Act. The assessee has filed the chart which shows that even some of the payments have been made for Flat Nos.489 and 490 after the extended period expired on 31st March 2015. The assessee despite taking specific plea before the CIT(A) and relied upon several decisions, the Ld. CIT(A) did not decide this issue in the light of decisions. Therefore, it requires actual verification how much assessee made payments after the extended period as per Law and whether the assessee would be entitled for deduction under section 54 as per the aforesaid decisions. Accordingly, set aside the Order of the Ld. CIT(A) as regards claim of exemption under section 54 in respect of Flat Nos.489 and 490 and restore the matter in issue to the file of Ld. CIT(A) with a direction to re- decide this issue as per Law, following the decisions of Ms. Jagriti Aggarwal [2011 (10) TMI 279 - PUNJAB AND HARYANA HIGH COURT] and CIT vs. Ms. Jagtar Singh Chawla [2013 (4) TMI 499 - PUNJAB AND HARYANA HIGH COURT] Exemption u/s 54 in respect of investment made by assessee-company in Flat K-1003 - such claim is not allowable in favour of assessee. Even according to the arguments of Learned Counsel for the Assessee, amendment in the Section is prospective in nature, therefore, it would not be allowed beneficial to the assessee. The language of Section 54 of the Income Tax Act is very clear that benefit under this provision could be extended in respect of investments made in one residential house in India. The authorities below, therefore, rightly denied the claim of exemption under section 54 in respect of Flat K-1003. The Orders of the authorities below to that extent are maintained and appeal of assessee is dismissed.
|