TMI Blog2010 (7) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... ving benefit of deduction claimed u/s 54(2) by depositing the amount of long term capital gain in State Bank account. 3. Rival contentions have been heard and record perused. Facts in brief are that the assessee is a retired army officer and senior citizen filed his return of income on 3.7.2006 in Ward No.3, Noida declaring total income of ₹ 4,12,600/-. The assessee showed nil capital gain on sale of his 1/4th share in ancestral property at 33 Poorve Marg, Vasant Vihar, New Delhi for a total consideration of ₹ 2,28,75,000/-. He showed nil capital gain on the plea of investment of ₹ 94.50 lakhs in a plot at DLF City Phase IV, Gurgaon and deposit of rest capital amount in bank of ₹ 25 lakhs in a capital gain account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 1,94,17,199/-, which was added to the assessee s income. By the impugned order, CIT(A) confirmed both the additions against which assessee is in further appeal before us. 4. We have considered the rival contentions, carefully gone through the orders of the authorities below and found that during the year under consideration, the assessee had sold 1/4th share in his ancestral property and computed capital gain thereon at nil by taking the fair market value of the property as on 1.4.1981 at ₹ 22,750/- per sq.yard. The valuation so taken by the assessee was on the basis of report of registered valuer. However, the AO deputed the DVO who has arrived at the fair market value as on 1.4.1981 at ₹ 5,000/- per sq.yard and after givi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the value of ₹ 22,750/- as arrived at by him. The assessee has filed different valuation reports on different occasions. At the first instance, computation of long term capital was based on valuation of property by a registered valuer as on 1.4.1987 by adopting the rate of land at ₹ 35,000/- per sq.yard. However, later on, the assessee filed valuation report by the same valuer valuing house property by taking value as on 1.4.1981 at ₹ 22,750/- per sq.yard. The AO further observed that on 30.12.2008, the assessee filed another valuation report adopting the rate of land at ₹ 10,500/- per sq.yard. All these indicate that even the valuer was not sure as to the valuation arrived at by him and the basis for the same. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nclined to agree with the contention of learned AR that non-utilization of the amount within the period of three years is to be seen for declining the claim of deduction only after expiry of three years and not in the relevant assessment year in which assessee has duly deposited the amount in the capital gains tax account before last date of filing the return. In the interest of justice and fair play, we restore this ground also back to the file of the AO for verifying all the relevant details with regard to investment in new residential plot as well as deposit in the bank account under capital gains tax scheme and its utilization thereafter if any within the statutory period as stipulated in the relevant provisions of Section 54 and for de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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