2023 (3) TMI 152 - AT - Income Tax

Revision u/s 263 - deduction u/s 54 - assessee had failed to deposit the unutilized capital gain proceeds in the capital gain account scheme, 1988, on or before the date of furnishing his return of income u/s 139(1) - assessee made investment in the name of his wife and mandatory condition to deposit the capital gains in prescribed manner was not fulfilled by the assessee - HELD THAT:- From the assessee’s submissions as made before CIT(A), it could be seen that the assessee has fairly demonstrated start of construction activities during the year. Substantial payment of Rs. 7 Lacs was made during the year towards construction activities and therefore, there would be no requirement to deposit the same in capital gains account scheme.

Another undisputed fact is that the amount of capital gains earned by the assessee has been utilized towards construction of house property though the new house property has been acquired in the name of the assessee’s wife. In our considered opinion, would not jeopardise the claim of the assessee considering the fact that the utilisation of sale proceeds towards construction of house property has not been disputed by AO. We do not find any reason to interfere in the impugned order. Appeal stand dismissed.