TMI Blog2016 (5) TMI 1373X X X X Extracts X X X X X X X X Extracts X X X X ..... id substantial amount for purchase of residential property before the extended due date of filing of return and the assessee was eligible for exemption and not liable to pay any capital gain tax. Considering the factual aspects, genuiness of transactions and beneficial and liberal aspects of the provisions and the judicial decisions relied by the assessee. We are of the opinion that assessee complied the conditions and is eligible for exemption u/s.54F of the Act. We set aside the order of CIT(Appeals) and direct AO to grant exemption u/s.54F of the Act on the remaining construction cost which was invested in the residential property before due date u/s.139(4) of the Act and allow the grounds of the assessee. - I.T.A. No. 2279/Mds/2015 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidering the cost of acquisition including stamp paper and registration charges and index cost of acquisition the net capital gains worked out to ₹ 44,12,820/-. The assessee claimed exemption u/s.54F of the Act on investment in the construction of residential house property. The assessee has complied the conditions u/s.54F of the Act by entering into construction and undivided share of land agreements on 03.02.2011 for total value of ₹ 66,64,457/- and assessee has invested ₹ 59,88,000/- in construction works. But the ld. Assessing Officer found the guideline value of the property as ₹ 82,28,252/- as per the Sub-Registrar Office, Neelankarai, Chennai on the date of execution of sale deed and deeming provisions u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 4 Commissioner of Income Tax (Appeals) order were ld. Authorised Representative supported the submissions relying on judicial decisions. The ld. Commissioner of Income Tax (Appeals) considered the factual issues, grounds, written submissions and findings of the Assessing Officer has elaboratively discussed in his order and concurred with the order of Assessing Officer and upheld. Aggrieved by the order of Commissioner of Income Tax (Appeals), the assessee has assailed an appeal before Tribunal. 5. Before us, the ld. Authorised Representative reiterated the submissions, of the assessment and appellate proceedings and explained that assessee is entitled for exemption u/s.54F considering the provisions of investment in the house propert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The crux of the disputed issue arise before Assessing Officer that the assessee should have deposited the amount in the capital gain accounts scheme before 139(1) of the Act, therefore the ld. Assessing Officer has restricted exemption u/sec. 54F and denied the balance. On perusal of the Sec. 54F(1) of the act the exemption is allowed to the assessee as under:- 54F. (1) [Subject to the provisions of sub-section (4), where, in the case of an assessee being an individual or a Hindu undivided family], the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or [two years] a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income from house property .] Considering the date of investments and provisions of laws as under:- (i) Date of transfer of vacant land : 02.10.2010. (ii) The date of filing of return by Assessee : 03.11.2011. (iii) Due date of filing return for the Assessment year 2011-12 : 31.07.2011. (iv) Date of builder agreement for Construction of house property : 03.02.2011. (v) Due date of filing of Belated return u/sec. 139(4) of the Act: 31.03.2013. Considering the above facts and provisions of law, the assessee has invested total considerati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. In the case of Jagtar Singh Chawla of Punjab and Haryana High Court in ITA No.71 of 2012, dated 20.03.2013 the assessee has paid substantial amount for purchase of residential property before the extended due date of filing of return and the assessee was eligible for exemption and not liable to pay any capital gain tax. Considering the factual aspects, genuiness of transactions and beneficial and liberal aspects of the provisions and the judicial decisions relied by the assessee. We are of the opinion that assessee complied the conditions and is eligible for exemption u/s.54F of the Act. We set aside the order of Commissioner of Income Tax (Appeals) and direct the Assessing Officer to grant exemption u/s.54F of the Act on the remaining c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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