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2023 (1) TMI 130 - AT - Income TaxDisallowance of claim for deduction u/s 54B as well as 54F - HELD THAT:- It is an admitted fact that the appellant had not deposited the unutilized sale consideration under the capital gains deposits scheme as prescribed under subsection (2) of section 54B of the Act. We also find that the agreement for purchase of new agricultural land was entered into on 28.06.2010 which is also beyond due date for filing the return of income and, therefore, the above fact clearly would go to show that the appellant had not utilized any portion of the sale consideration towards purchase of new agricultural land and the ratio of decision of the Hon’ble Bombay High Court in the case of Humayun Suleman Merchant [2016 (9) TMI 70 - BOMBAY HIGH COURT]has been rightly applied by the ld. CIT(A). Deduction u/s 54F - CIT(A) has clearly set out the fact vide para 9 of his impugned order. On perusal of the said para 9 of the impugned order, it is clear that only amount of Rs.4,00,000/- was utilized before due date for filing of the return of income for purchase of residential house and the entire balance consideration was paid on 27.07.2010, 28.08.2010 and 12.02.2011 which is clearly beyond due date for filing the return of income for the assessment year 2009-10 and it is undisputed fact that unutilized consideration was not deposited under the capital gains deposits scheme, as stipulated time under sub-section (4) of section 54F - CIT(A) had rightly restricted the deduction to the extent of investment made in construction of new house till the date of construction of the house property and the ratio of the decision of the Hon’ble Bombay High Court (supra) is squarely applicable. Therefore, we find that the order of the ld. CIT(A) is well reasoned and based on the proper appreciation of facts and legal position governing the issue on hand. Accordingly, we do not find any reason to interfere with the order of the ld. CIT(A). Thus, the ground of appeal no.3 filed by the assessee stands dismissed.
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