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2020 (1) TMI 156 - AT - Income TaxDeduction u/s. 54 - Denial of claim as assessee failed to comply with the requirements of section 54(2) i.e., not depositing the unutilized capital gain in a designated bank account within the due date prescribed u/s.139 - assessee failed to comply with the requirements of section 54(2) Capital gain utilized in purchasing the new asset within a period of two years from the date of transfer - HELD THAT:- It is not disputed that the assessee did not deposit the unutilized long term capital gain in the designated bank account as per section 54(2) of the Act. Nevertheless, he has completed the purchase of a new asset within a period of two years from the date of transfer. In such circumstances, courts have taken a view that there is no requirement to satisfy the condition u/.s 54(2) Decision in the case of CIT v. K. Ramachandra Rao [2015 (4) TMI 620 - KARNATAKA HIGH COURT] also supports the plea of the assessee. The Hon'ble High Court took the view that the question of deposit of unutilised capital gain will come up for consideration only when the capital gain is not utilised in construction of house property and when it is so utilised for construction of house property, then there is no need to make a deposit in the specified bank account. The decisions rendered in the context of section 54F of the Act will also apply to section 54 of the Act, because both the sections are in pari materia the same, on the aspect of deposit of unutilized capital gain in specified bank account. In view of the aforesaid decisions of the Hon'ble Karnataka High Court, we are of the view that the assessee is entitled to deduction u/s. 54 - Decided in favour of assessee.
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