Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 1197 - AT - Income TaxBenefit of exemption u/s.54B(1) - AO denied the assessee’s claim on the ground that the she did not deposit the amount of capital gain in the designated capital gain account maintained with a bank before the due date of filing return u/s.139(1) - HELD THAT:- It is more than clear that section 139 is to be read here as section 139(4) and not to be confined to section 139(1) alone. As per the facts obtaining in this case, it is observed that the time u/s.139(4) was available up to 31-03-2014. The assessee opened a bank account under the designated Capital gain account scheme on 03-08-2013 and purchased a new property on 26-08-2013. It is evident that the assessee complied with the requirement of section 54B(2) seen in the light of the time limit as per section 139(4) of the Act. It is relevant to take note of the judgment of Hon’ble Madras High court in the case of Venkata Dilip Kumar [2019 (11) TMI 416 - MADRAS HIGH COURT] held that the requirement of depositing in the capital gain account scheme u/s.54(2) is directory. If the amount is utilized within the stipulated period of two/three years while depositing in the capital gain account scheme, there can be no denial of exemption u/s.54 because the substantial requirement of purchasing new property was satisfied. Coming back to the facts of the instant case, it is seen that section 54B(1) requires purchasing of new agricultural land within the period of two years from the date of sale of earlier agricultural land. The original agricultural land in this case was sold on 12-10-2011. New agricultural land was purchased on 26-08-2013, which is well within the given period of two years from the date of transfer. Assessee complied with the conditions for availing exemption u/s.54B. Therefore, set-aside the impugned order and direct to grant the benefit u/s.54B as claimed. - Decided in favour of assessee.
|