Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2021 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 330 - HC - Income TaxRefund the monies lying in the Capital Gains Account Scheme (CGAS) with the bank along with interest at prevailing rates - scheme of investment of capital gain in terms of Section 54/54F - HELD THAT:- As regards the taxability of the transaction of sale, there is nothing to be said in so far as, admittedly, the time lines for bringing capital gains, if any, to tax, have long elapsed. The allegation of the revenue to the effect that the petitioners have timed the request for closure well after the expiry of the statutory timelines may well be correct, but the Department has missed the bus in this regard. What remains is the closure of the account and refund of the amounts to the petitioners. The operation of the account in question is a matter of contract qua the petitioners and R2 and the petitioners are at liberty to give such instructions to R2 as they may wish to, in this regard. Form-G which is to be approved by the assessing authority will have no application in this case since the transaction giving rise to capital gains has not been captured by the Department. In any event, today, R1 does not have any claim towards the amounts in the bank accounts. Thus, the petitioners are at liberty to issue suitable instructions to R2 in regard to their bank accounts and such request, including request for closure of and refund of balances, shall be honoured by R2 in accordance with the terms of the contract governing the parties and without insistence upon Form-G of the CGAS Scheme.
|