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2019 (9) TMI 1234 - AT - Income TaxRevision u/s 263 - AO allowing deduction under section 54(1) - till the actual date of filing of return of income by the assessee for the impugned assessment year, the capital gain had not been utilized for purchase of new residential house - HELD THAT:- Though, the provision of section 54(2) of the Act encompasses due date of filing of return of income not only as per section 139(1) but even section 139(4) and 139(5) of the Act, however, the condition of section 54(2) of the Act would stand satisfied if the assessee invests the unutilized capital gain in purchase of new house property before the actual date of filing of return of income for the subject assessment year even within the extended time permitted under section 139(4) and 139(5) of the Act. That being the case, it cannot be said that the decision of the Assessing Officer is in accordance with the legal position prevailing at the relevant point of time. The other decisions cited by the learned Authorised Representative challenging the validity of exercise of jurisdiction under section 263 of the Act, would not help the assessee in view of the specific fact involved in the present case. Thus, on overall consideration of facts and the decision of the Hon'ble Jurisdictional High Court in Humayun Suleman Merchant [2016 (9) TMI 70 - BOMBAY HIGH COURT] we have no hesitation in holding that learned Principal Commissioner has correctly exercised his power under section 263 of the Act to revise the impugned assessment order. Accordingly, we uphold the order passed under section 263 of the Act by dismissing the grounds raised by the assessee.
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