Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (1) TMI 1044 - AT - Income TaxDisallowing the claim of exemption u/s 54-F - Belated filing of ITR - investment in NHAI Bonds - AO disallowed the exemption by taking view that held that capital gain was not deposited by assessee before due date of filing return of income under section 139(1) - HELD THAT:- We find that there is no dispute that the assessee sold his asset on 26.02.2010 and purchased of NHAI Bonds of ₹ 10 lakh on 26.03.2010 and ₹ 15 lakh on 11.08.2010, the assessee filed return of income under section 139(4) on 31.03.2011. Further, the assessee purchased of new residential house on 22.09.2011 and appropriated entire capital gain. As in CIT Vs Rajesh Kumar Jalan [2006 (8) TMI 126 - GAUHATI HIGH COURT] in the context of section 54 held that a plain reading of sub-section (2) of section 54, it is clear that only section 139 is mentioned in section 54(2) in the context that the unutilised portion of the capital gain on the sale of property used for residence should be deposited before the date of furnishing the return of the income-tax under section 139. Section 139 cannot mean only section 139(1) but it means all sub-sections of section 139. Under subsection (4) of section 139, any person who has not furnished a return within the time allowed to him under sub-section (1) of section 142, may furnish the return for any previous year at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. Such being the situation, it was the case of the assessee that he could fulfil the requirement under section 54 for exemption of the capital gain from being charged to income-tax on the sale of property used for residence, could be furnished before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier, under sub-section (4) of section 139. When the assessee has deposited ₹ 15 lakhs of capital gain in purchasing the Bond of NHAI before due date of filing of return of income under section 139(4), his claim for exemption under section 54 –F was not to be disallowed. Hence, we direct the AO to allow the entire capital gain earned by the assessee as exempted under section 54F. - Decided in favour of assessee.
|