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2019 (12) TMI 1204 - AT - Income TaxDeduction u/s 54F - claim rejected as assessee has not deposited the unutilized sale consideration in capital gains account scheme before the due date for filing the return of income for asst. year 2013- 14 as per sec. 54F(4) and construction has not been completed within 3 years from the date of transfer of original asset - HELD THAT:- If the assessee has invested entire sale consideration within three years, then the requirement of complying with provisions of sec.54F(4) cannot come into the way of the assessee for claiming deduction u/s 54F. Assessee has not completed the construction within 3 years of date of transfer of original asset - As decided in SAMBANDAM UDAYKUMAR [2012 (3) TMI 80 - KARNATAKA HIGH COURT] if he has invested the money in construction of a residential house, merely because the construction was not complete in all respects and it was not in a fit condition to be occupied within the period stipulated, that would not disentitle the assessee from claiming the benefit under section 54F of the Act. The essence of the said provision is whether the assessee who received capital gains has invested in a residential house. Once it is demonstrated that the consideration received on transfer has been invested either in purchasing a residential house or in construction of a residential house even though the transactions are not complete in all respects and as required under the law, that would not disentitle the assessee from the said benefit. What is required to be seen is whether the assessee has invested the sale consideration proportionate to the deduction claimed u/s 54F of the Act in construction or purchase of new residential house within the period prescribed in the section. Accordingly, we set aside the order passed by Ld CIT(A) and restore the issue to the file of the AO for verifying the quantum of amount spent by the assessee before three years from the date of transfer of original asset and accordingly for examining the deduction claimed u/s 54F of the Act. - Decided in favour of assessee.
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