TMI Blog2008 (10) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... registered sale deed dt. 27th July, 1987. The assessee entered into an agreement for purchase of an urban house property for a sum of Rs. 8,50,000 and had paid Rs. 3,50,000 in the asst. yr. 1988-89. The assessee purchased the said property by a registered sale deed on 15th Dec., 1988 by paying a balance of Rs. 5,00,000. The assessee had to file returns by 30th July, 1988. The AO issued notice to the assessee under s. 148 of the IT Act. The assessee on 27th Feb., 2000 filed the returns declaring the income as nil for tax purpose. It is the contention of the assessee that in the assessment year of sale, the assessee entered into an agreement for purchase and paid an advance of Rs. 3,50,000. The balance was paid and registered sale deed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place it shall be dealt with in accordance with the following provisions of this section, that is to say, (i) if the amount of the capital gain is greater than the cost of the residential house so purchased or constructed (hereafter in this section referred to as the new asset), the difference between the amount of the capital gain and the cost of new asset shall be charged under s. 45 as the income of the previous year, and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase or construction, as the case may be, the cost shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be the cost of the new asset: Provided that the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-s.(1), then, (i) the amount not so utilised shall be charged under s. 45 as the income of the previous year in which the period of three years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid. 139(4): Any person who has not furnished a return within the time allowed to him under sub-s. (1), or within the time allowed under a notice issued under sub-s. (1) of s. 142, may furnish the return for any previous year at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le return in the extended time, which is within 31st March, 1990. The extended due date under s. 139(4) would be 31st March, 1990. The assessee did not file the return within the extended due date, but filed the return on 27th Feb., 2000. However, the assessee had utilised the entire capital gains by purchase of a house property within the stipulated period of s. 54(2) i.e., before the extended due date for return under s. 139. The assessee technically may have defaulted in not filing the return under s. 139(4). But, however, utilised the capital gains for purchase of property before the extended due date under s. 139(4). The contention of the Revenue that the deposit in the scheme should have been made before the initial due date and not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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