TMI Blog2004 (6) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... ame appellate order. 3. Ground No. 1 of assessee s appeal and ground Nos. (i) and (ia) of the Department s appeal relate to an addition on account of denial of exemption under s. 54F. 4. The appellant is employed in the Public Health Engineering Department (PHED). He had sold a plot at Jaipur on 4th Jan., 1995, relevant to asst. yr. 1995-96 for a total consideration of Rs. 5 lakhs. A copy of the agreement is placed at pp. 13 to 19 of the paper book. The assessee entered into an agreement to purchase a residential house situated at Vivek Vihar, Jaipur, and paid earnest money of Rs. 2 lakhs to Shri P.K. Singhvi. This agreement did not materialise because the flat was occupied by a tenant who did not vacate it. Eventually, the agreement wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the return under s. 139. The learned CIT(A) accepted the claim in respect of the flat which was ultimately not purchased, but rejected the claim in respect of the flat wherein actual investment was finally made by the assessee. Both the parties are aggrieved and have filed respective appeals. 7. We have heard the rival submissions and have perused the evidence on record. 8. The learned Authorised Representative has submitted that s. 54F was introduced by the Finance Act, 1982, which permitted reinvestment of the proceeds received on transfer of a capital asset in the purchase within a year or construction within three years of a residential house to avoid payment of capital gain tax. This provision was introduced with the sole intention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent in the capital gain account scheme before filing of the return under s. 139 of the Act. The learned Authorised Representative has relied on the following various decisions at p. 4 of the paper book: 1. Bajaj Tempo Ltd. vs. CIT (1992) 104 CTR (SC) 116 : (1992) 196 ITR 188 (SC) wherein it has held by the Hon ble Supreme Court that a provision in taxing statute granting incentives for promoting growth and development should be construed liberally. 2. CIT vs. Gwalior Rayon Silk Manufacturing Co. Ltd. (1992) 104 CTR (SC) 243 : (1992) 196 ITR 149 (SC) wherein it was held by the Hon ble Supreme Court that it is a settled law that the expressions used in the taxing statutes would ordinarily be understood in the sense in which it is harmonio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hase a flat. When due to certain unavoidable circumstances, the contract did not materialise, it cannot be said that there was any hanky panky on the part of the assessee to avoid payment of tax. The assessee ultimately purchased a flat within two years from the sale of plot. The default committed by the assessee was a technical default that the assessee did not deposit the amount meant for reinvestment in the capital gain account scheme before filing return under s. 139 of the Act. Keeping in view the totality of the facts and circumstances of the case and the decisions relied by the learned Authorised Representative, we are of the considered opinion that the amount of Rs. 4,01,000 out of Rs. 5 lakhs which were ultimately invested within t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t which he made a total deposit of Rs. 3 lakhs in Vijaya Bank, Jaipur, which included single deposit on 31st March, 1995. Thus the learned CIT(A) was right in holding that the deposits made by assessee in Vijaya Bank, Jaipur stand well explained from the withdrawals made from SBBJ Bank, Jodhpur and he had rightly deleted the addition made by AO. We do not find any infirmity in the order of the learned CIT(A). As a result we decline to interfere with the impugned order of the learned CIT(A). 13. The Department has withdrawn ground No. (iii) of its appeal, so it is dismissed as withdrawn. 14. Ground No. 2 of the assessee is same as ground No. (iii) of Department s appeal which relates to charging of interest under ss. 234A and 234B which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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