TMI Blog2005 (9) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 54F(4). Similarly, the plea of the assessee that the provisions be construed liberally so as to further its objective is also not tenable having regard to the clear provisions of law discussed above, which required the assessee to comply with the same. The assessee, not having complied with the conditions specified in sub-section (4) of section 54, the exemption has been rightly denied by the lower authorities. In the result, the appeal of the assessee is dismissed. - N.V. VASUDEVAN AND G.S. PANNU, JJ. R.S. Singhvi for the Appellant. Jyoti Shankar for the Respondent. ORDER G.S. Pannu, Accountant Member - This is an appeal by the assessee against the order of the CIT(A) dated 26-9-2000 pertaining to assessment year 1997-98. 2. Grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale of shares was to be appropriated by the assessee towards the purchase of a residential property within one year before or two years after the date on which the transfer of shares took place or the same was to be utilized for construction of a residential property within a period of three years. In terms of sub-section (4) of section 54F if the amount of net consideration was not so appropriated before the date of furnishing the return of income under section 139, the assessee was required to deposit such consideration in an account in such bank or institution, as may be specified in, and utilized in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf. The scheme ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property, including for receipt of further remittances from abroad for meeting the cost of acquisition of such property. Therefore, in sum and substance, he had complied with the provisions of section 54F(4). In nutshell, the assessee contended that by not maintaining a bank account designated under the Capital Gains Accounts Scheme, 1988, only a technical breach was committed, while in substance, the conditions specified in section 54F have been complied with. After considering the aforesaid plea of the assessee, the CIT(A) has since sustained the denial of exemption on the ground that the essential condition envisaged under sub-section (4) of section 54F has not been complied with by the assessee. Against the aforesaid decision of the CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the exemption provisions be construed liberally and for that proposition relied upon the decision of the Apex Court in the case of Bajaj Tempo Ltd. v. CIT [1992] 196 ITR 188. It was also canvassed that the provisions of section 54F be construed in a manner to further its objective and not to restrain it. 6. On the other hand, ld. DR has defended the orders of the lower authorities by pointing out that essential conditions contained in section 54F(4) have not been complied with, which was an admitted position and thus, the exemption has been rightly denied. 7. We have considered the rival submissions carefully and have also perused the orders of the lower authorities and the authorities cited at Bar and on the basis of the aforesaid, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accommodation. The Tribunal, considering the purport of sub-section (4) of section 54F, concluded that by depositing the money in the housing division of the assessee s contract business, the assessee actually utilized the fund for the purposes of constructing a new residential house. The Tribunal noticed that, on facts, the funds were utilized for the purchase of material for construction of the new house by such business unit of the assessee. It was under such circumstances that the claim of the assessee for exemption under section 54F was allowed and the assessee was deemed to have complied with the conditions of section 54F(4). The present case stands on a totally different footing. The Madras Bench of the Tribunal came to a factual co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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