Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (3) TMI 152 - AT - Income TaxDeduction u/s.54 - sale consideration received in installments has been re-invested in new property by the assessee, and also claimed deduction under section 54/54F - AO held that the assessee has made certain payments with respect to purchase of new flat after the due date of filing of return of income u/s.139 - HELD THAT:- Sub-section (4) of section 54/54F is attracted only to a case where the sale consideration is NOT utilized by the assessee either for purchase or for construction of a residential house. This sub-section 4 has NO application to a case, where the assessee invests the sale consideration derived from the transfer either in purchasing the property within one year or constructing the residential house within three years period as stipulated in Section 54F(1). In the present case the assessee though registered the old property as per Sale Deed dated 02-12-2014 but received the sale considerations only on 07-07-2015 and 12-10- 2015 respectively. The assessee also reinvested the sale considerations immediate on the receipt of the same which is well within 3 years period in case of construction of a residential house/flat. Thus the question of deposit in Capital Gains account does not arise in this case. Therefore, we set aside the orders of both the lower authorities and direct the AO to delete the disallowance made and allow the entire claim of deduction to the assessee. Thus, the ground of assessee appeal is allowed.
|