9911796707
TMI Blog2018 (8) TMI 1720X X X X Extracts X X X X X X X X Extracts X X X X ..... er dated 25. 03. 2014 passed by learned Assessing Officer (hereinafter called "the AO") u/s 143(3) of the Income-tax Act, 1961 (hereinafter called "the Act") for AY 2011-12. 2. The grounds of appeal raised by the assessee in the memo of appeal filed with the Income-Tax Appellate Tribunal, Mumbai (hereinafter called "the tribunal") read as under:- "1. The ld. Commissioner of Income Tax (Appeals) erred in restricting the benefits of deduction under section 54 of the Act to the extent of investment in new assets only upto the due date of filing of Return under section 139(1) of the Act being Rs, 33,56,398/- and not granting relief on Rs. 6,20,883/- which was invested subsequently. The appellant craves leave to add to, alter, amend, modif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of flat. The AO observed that even the provisional allotment letter held by the assessee is un-registered and the assessee did not become the owner of the said residential flat. In the opinion of the AO, the assessee did not become the owner of the said flat nor any substantial payments were made by the assessee towards the said flat during the year under consideration . The AO passed assessment order dated 25-03-2014 u/s 143(3) of the 1961 Act denying the deduction u/s 54 of the 1961 Act. 4. The assessee being aggrieved by the assessment order passed by the AO u/s 143(3) of the 1961 Act denying deduction u/s 54 of the 1961 Act carried the matter before learned CIT(A) by filing first appeal. The learned CIT(A) observed that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on u/s 54 of the 1961 Act to the tune of Rs. 33,56,398/-, vide appellate orders dated 25-01-2017. 5. Now aggrieved by the decision of learned CIT(A) in restricting deduction u/s 54 of the 1961 Act to the tune of Rs. 33,56,398/- as against the claim of the assessee for deduction u/s 54 of the 1961 Act to the tune of Rs. 39,77,281/-, the assessee is in appeal before the tribunal. 6. The brief question for determination before the tribunal is as to the quantum of amount to be allowed as deduction u/s. 54 of the Act as the learned DR could not bring on record that Revenue has come in appeal before the tribunal against the part relief granted by learned CIT(A). The AO has disallowed the entire claim of the assessee of deduction u/s 54 of the 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see was disallowed by ld CIT(A) . It is undisputed that the assessee has not invested any amount in the notified bank account designated under capital gain scheme as stipulated u/s. 54 of the 1961 Act, while the investments were made in the new residential flat at Bangalore as claimed by the Ld. Counsel for the assessee till the date of filing of return of income, as under:- 23. 08. 2010 Rs. 2,56,450/- 09. 09. 2010 Rs. 6,00,000/- ( cost of flat including floor rise, parking -Rs 5,65,780 + servicetax Rs. 36,058/-) 16. 09. 2010 Rs. 30,98,083. 00 ( HDFC Loan disbursement) Thus, apart from above investments in new residential flat, further investment were claimed to be made in the said new flat to the tune of Rs. 1. 76 la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has not invested in the notified bank account under capital gain scheme of the bank as mandated u/s 54 of the 1961 Act but still the benefit of deduction u/s 54 of the 1961 Act cannot be denied for investments made in new residential flat till the date of filing of return of income by the assessee with Revenue. Thus in our considered view keeping in view decision of Hon'ble jurisdictional High Court in the case of Humayun Suleman Merchant(supra) and also keeping in view the fact the assessee has not deposited the amount in notified bank account maintained under capital gain bank account scheme as provided u/s 54 of the 1961 Act before the due date of furnishing of return of income, deduction of Rs. 1. 76 lakh on account of inv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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