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2022 (8) TMI 1082 - AT - Income TaxDenying exemption u/s. 54F - assessee failed to invest the capital gains towards purchase of a new flat before due date of filing of return of income u/s. 139 or further, failed to deposit the capital gains in the capital gain account - HELD THAT:- Admittedly the due date for filing of return of income u/s.139(1) is 31-07-2014 and the time limit available for assessee for filing of return of income u/s. 139(4) is 31-03-2015. Admittedly, there is no dispute that the assessee made investment in purchasing a new flat on 06-02-2015 and it is evident from the assessment order that the assessee filed e-return of income on 27-02-2015 which is u/s. 139(4) - As note that subsection (4) of section 54F is also clear that the net consideration which is not utilized for the purpose or construction of a new asset before due date of furnishing return of income u/s 139 the assessee has to mandatorily deposit before furnishing such return of income. It is clear from the record that the assessee made investment on 06-02-2015 i.e. before furnishing the return of income u/s. 139(4) of the Act on 27-02- 2015. The assessee cannot be held to be ineligible for claiming exemption u/s. 54F on the reason that the investments are not made before due date for filing of return of income u/s.139(1) - order of CIT(A) is not justified and it is set aside. We hold that the assessee made investments from capital gains arising out of transfer of original capital asset towards purchase of a new asset within specified period before filing of return of income u/s. 139(4). The order of CIT(A) is not justified and it is set aside - assessee made investments from capital gains arising out of transfer of original capital asset towards purchase of a new asset within specified period before filing of return of income u/s. 139(4) of the Act. Thus, the grounds raised by the assessee are allowed.
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