TMI Blog2018 (11) TMI 860X X X X Extracts X X X X X X X X Extracts X X X X ..... asset within a period of 3 years from the date on which the transfer took place, subject to a rider that the assessee should have deposited the amount of capital gain in a CGAS account with a specified bank by not later than the ‘due date’ applicable in his case for furnishing the ‘return of income’ under sub-section (1) of Sec.139. We find that the case before us clearly falls within the sweep of the aforementioned first limb of sub-section (2) of Sec.54. As the assessee in the case before us had appropriated the amount of the LTCG towards purchase of the new residential property viz. Flat A-203, Crown @ Hiranandani, Thane on 22.04.2014 i.e before the date contemplated under Sec.139(4), thus by having utilized the LTCG before the date of furnishing the ‘return of income’ under Sec. 139, his claim of exemption under Sec. 54 is found to be in order. - decided against revenue. - ITA No. 4233/Mum/2017 - - - Dated:- 9-11-2018 - Shri Shamim Yahya, Accountant Member And Shri Ravish Sood, Judicial Member For The Appellant : None For The Respondent : Shri Chaitanya Anjaria, D.R ORDER Per Ravish Sood, JM The present appeal filed by the revenue is dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvested the entire capital gain receipts in the acquisition of the new residential property before the due date of filing of the return of income under Sec.139(1) of the Act i.e. latest by 31.07.2013. Further, the A.O was of the view that in case the assessee could not appropriate the amount of capital gain towards the investment in the new asset, then it was obligatory on his part to have deposited the said amount in the Capital Gain Account Scheme (for short CGAS ) with a specified bank. 4. It was noticed by the A.O that in respect of the new flat viz. A/203, Crown @ Hiranandani, Thane purchased by the assessee for ₹ 85,92,700/- the first token payment of ₹ 2 lac was made by the assessee on 12.03.2014 and the agreement of purchase was executed on 22.04.2014. In the backdrop of the aforesaid facts, it was observed by the A.O that the assessee had neither utilised the funds for purchase of any residential property before the due date of filing of the return of income, nor had he deposited the same in the CGAS account with an authorised bank. On the basis of his aforesaid observations, the A.O holding a conviction that the assessee had failed to effect compliance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lved in the present appeal lies within a narrow compass. Admittedly, the assessee had neither appropriated the LTCG arising on sale of a residential property for purchase of a new residential property, nor deposited the said amount in the CGAS account by the due date contemplated under Sec. 139(1) for filing of the return of income in his case i.e 31.07.2013. However, the assessee had purchased a new residential property viz. A/203, Crown @ Hiranandani, Thane within the period provided under Sec. 139(4) of the Act. The A.O being of the view that as the assessee had failed to deposit the amount of LTCG in the CGAS account with the specified bank by the due date of filing of the return of income as contemplated under Sec. 139(1) in his case, thus his claim for exemption raised under Sec. 54 was liable to be disallowed. However, as observed by us hereinabove, the CIT(A) not finding favour with the view taken by the A.O had dislodged the same and had allowed the claim of exemption raised by the assessee in his return of income . 8. We have given a thoughtful consideration to the issue before us and are persuaded to subscribe to the view taken by the CIT(A). On a perusal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the return of income under Sec.139 of the Act; and (b) a case where the assessee had not appropriated the amount of the capital gain before the date of furnishing the return of income under Sec.139, there he shall be eligible to claim exemption under Sec.54 towards purchase of the new asset within a period of two years after the date on which the transfer took place or towards construction of a new asset within a period of 3 years from the date on which the transfer took place, subject to a rider that the assessee should have deposited the amount of capital gain in a CGAS account with a specified bank by not later than the due date applicable in his case for furnishing the return of income under sub-section (1) of Sec.139. We find that the case before us clearly falls within the sweep of the aforementioned first limb of sub-section (2) of Sec.54 of the Act. As the assessee in the case before us had appropriated the amount of the LTCG towards purchase of the new residential property viz. Flat A-203, Crown @ Hiranandani, Thane on 22.04.2014 i.e before the date contemplated under Sec.139(4), thus by having utilized the LTCG before the date of furnishing the return of income ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
