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2021 (4) TMI 644 - AT - Income TaxClaim of exemption u/s 54 - assessee failed to comply with section 54 by not depositing the unutilized amount of capital gain in the Capital Gains Deposit Scheme, 1988 within the stipulated time of furnishing the return of income-tax u/s 139 - HELD THAT:- We have carefully considered the judgment passed in the matter of ITO vs. Nilima Abhijit Tannu [2019 (7) TMI 1073 - ITAT MUMBAI] where the same issue has cropped up and it was observed that when the unutilized portion of capital gain on sale of capital asset is required to be deposited before the date of furnishing of return of tax under Section 139, in such a situation Section 139 cannot be meant only Section 139 but it means all sub-Sections of Section 139. Tribunal has been pleased to hold that the assessee has fulfilled condition for deduction u/s 54F within extended time limit of filing of return under Section 139(4) and the claim of the assessee cannot be negated merely he did not deposit amount in the said scheme before the expiry of the time period provided under Section 139(1) of the Act. Thus, taking into consideration the entire aspect of the matter the ratio laid down in the matter Bhavnagar University vs. Palitana Sugar Mills (P.) Ltd. [2002 (12) TMI 563 - SUPREME COURT] as also in the matter of CIT vs. Shri K. Ramachandra Rao [2015 (4) TMI 620 - KARNATAKA HIGH COURT], and that if the intention is not to retain cash but to invest in construction or purchase any property and if such investment period stipulated therein, then Section 54F(4) is not attracted. It appears from the records that the assessee has complied with the requirement of the substantive provision of Section 139 and, therefore, is entitled to the claim of exemption under Section 54F. Hence, we find no reason to pass such order by the Revenue in disallowing the exemption as the claimed under Section 54F of the Act by the assessee. Assessee’s appeal is allowed.
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