TMI Blog2013 (11) TMI 675X X X X Extracts X X X X X X X X Extracts X X X X ..... (4) had to be read along with sub-section (1) of section 139 and the due date for furnishing the return of income u/s 139(1) is subject to the extended period provided u/s 139(4). Hence, extended period u/s 139(4) has to be considered for the purpose of utilization of the capital gain amount – Following the above judgment, assessee is entitled to claim deduction u/s 54F of the Act for utilization of sale consideration for investment in new residential property within due date as stipulated u/s 139 of the Act – Decided in favor of Assessee. - I.T.A. No.4648/Mum/2013 - - - Dated:- 6-11-2013 - Shri B. R. Mittal,(JM) And Rajendra (AM),JJ. For the Appellant : Shri Mandar Vaidya For the Respondent : Shri Javed Akhtar ORDER Per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Z Industrial Estate for total consideration of Rs.70 lakhs on 21.11.2008. AO also noted that assessee entered into a MOU on 1.8.2009 with M/s Orlando Trading Pvt. Ltd for purchase of the property along with other family members for total consideration of Rs.1,11,84,000/-. The assessee claimed exemption u/s 54F on entire gain on purchase of residential house purchased. The transfer deed was made on 15.10.2009 and the payment of Rs.10 lakhs was made on 1.8.2009 and the balance was paid by October, 2009. AO called upon the assessee to explain as to whether the consideration received was utilized before the date of furnishing of return of income u/s 139(1) and if not, whether the same was deposited in Capital Gain Scheme Account before the du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of return specified u/s 139(1) i.e.before 31.7.2009, even if it was not utilized by that date the assessee was eligible for exemption in view of the provisions of section 54F(1) which provides that the property can be purchased within two years after the date of transfer, but as on the date of filing of return the amount should be deposited in capital gain scheme account. Therefore, AO was of the view that assessee had not utilized the net consideration before the due date of filing of return u/s 139(1) and nor deposited the net consideration in the capital gain account scheme before due date. Therefore, assessee is not eligible for exemption u/s 54F. He was also of the view that assessee has not utilized the amount prior to the return file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s also considered by ITAT Delhi Bench in the case of Taranbir Singh Sawhney V/s DCIT [2006] 5 SOT 417 (DELHI), wherein, the exemption u/s 54F of the Act was denied to the assessee where the assessee failed to appropriate the net consideration towards purchase of residential property and nor was deposited in the gain specified in terms of section 54F (4) before the due date of filing of the return u/s 139 (1) of the Act. 5. We have carefully considered the submissions of ld. Representatives of the parties and orders of authorities below. We have also considered the orders cited before us by ld. Representatives in support of their submissions. 6. Only issue involves in this appeal is as to whether extended period as per section 139(4) has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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