TMI Blog2017 (6) TMI 439X X X X Extracts X X X X X X X X Extracts X X X X ..... en encashed by the builder belatedly and hence the assessee should not be penalized for that and that once cheques have been issued, assessee’s liability gets fulfilled and the same constitute utilization of sale proceeds of the old house, we find merit in the submissions of the assessee. There is not dispute that the assessee has issued cheques to the seller of house property on 26.7.2012, which is prior to the date of furnishing of return of income of the instant year. Accordingly, we are of the view that there is no requirement to comply with the provisions of section 54(2) of the Act in the facts and circumstances of the case. - Decided against revenue. - I.T.A. No. 4769/Mum/2015 - - - Dated:- 26-5-2017 - Shri B. R. Baskaran (AM) An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) noticed that the time limit available for making investment in a new residential house is two years from the date of sale of original asset and the amount not invested prior to the date of filing of return of income should be invested in capital gain account before the due date of filing of return of income. The learned CIT(A) noticed that the due date for filing return of income in certain class of assessees (those who are required to file return electronically) was extended up to 31.8.2012 for the year under consideration. The Ld CIT(A) noticed that the assessee was falling under that class, since his total income exceeded ₹ 10.00 lakhs. The learned CIT(A) noticed that the assessee has paid the consideration for new house wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended that the condition prescribed in section 54(2) have not been fulfilled by the assessee and hence the AO was justified in rejecting the claim made u/s. 54 of the Act to the extent of ₹ 62.21 lakhs. 7. We notice that the Assessing Officer himself allowed deduction u/s 54 of the Act to the extent of Rs. 75 lakhs and disallowed only part claim of Rs. 62.21 lakhs. The reason given by the Assessing Officer for making disallowance is that the payment for purchase of new house property has not been made within one year from the date of transfer of original asset. We have already seen that the provisions of section 54(1) allow purchase of new house within two years from the date of transfer of asset and hence the view taken by the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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