TMI Blog2019 (10) TMI 1025X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 54F of the Act. Regarding the payment made by the assessee before 31/03/2014, Hon ble High Court of Rajasthan in the case of Shankar Lal Saini [ 2018 (1) TMI 1000 - RAJASTHAN HIGH COURT ] held that, where assessee, an individual deposited unutilized sale consideration in capital gains scheme within the due date of filing of belated tax return under section 139(4), the capital gains relief under section 54F of the Act would be allowable The payment made by the assessee towards purchase of residential house up to the due date of filing of the return of income prescribed under section 139(4) of the Act i.e. 31/03/2014 is allowable for considering deduction under section 54F of the Act. Respectfully, following the above decisions, we accordingly direct the Assessing Officer to consider amount utilized by the assessee for purchase of the house till 31/03/2014(which includes the payment of ₹ 50,36,422/- made up to 31/07/2012) for deduction under section 54F of the Act. - Decided partly in favour of assessee - ITA No.5635/Del/2016 (Assessment Year: 2012-13) - - - Dated:- 6-8-2019 - SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und No. 1, the assessee has challenged the action of the Assessing Officer of disallowing claim of the assessee under section 54F of the Act. In ground No. 2, the assessee is aggrieved with not considering the sum paid for purchase of the new asset before the due date of the filing of return of income despite allowability of which was accepted by the Assessing Officer in the remand proceeding. In ground No. 3, the assessee is aggrieved by further deduction under section 54F in respect of the payment made for purchase of the flat beyond the due date of the filing of the return of income i.e. 31/03/2012. The grounds of the assessee are connected with single issue of deduction under section 54F of the Act and, thus all the grounds are adjudicated in consolidated manner. 4. The brief facts qua the issue in dispute are that the Assessing Officer noticed sale of plot of land located at Gurgaon, (which was held jointly with her husband) for a total sale consideration of ₹ 1,95,00,000/-. After indexation of the cost of the acquisition, the capital gain was computed at ₹ 1,77,19,468/- and the share of the assessee of the capital gain was worked out to ₹ 88, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 dated 15/10/1986. The factual information of payment of ₹ 50,36,422/- before 31/07/2012 was verified by the Assessing Officer in the remand proceeding and found by him not to be incorrect. The Ld. CIT(A), however, did not consider this claim of the assessee. The second argument of the assessee was also not accepted by the Ld. CIT(A) observing that CBDT Circular(supra) was not applicable as circular relate to the circumstances under which entire capital gain was not invested in the new asset due to delay on the part of the Delhi Development Authority (DDA). 7. Before us, the Ld. counsel filed a paper-book containing pages 1 to 7 and referred to page 3 of the paper book, wherein total payments of ₹ 70,08,252/-for purchase of new asset is recorded. The Ld. counsel submitted that the fact of the payment of ₹ 50,36,422/- before 31/07/2012 has even been accepted by the Ld. Assessing Officer in remand proceeding and, therefore, the Ld. CIT(A) is not justified in not considering the amount of ₹ 50,36,422/- for deduction under section 54F of the Act. Regarding the balance payment out of the total payment of ₹ 72,08,252/-made for purchase of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot later than the due date applicable in the case of the assessee for furnishing the return of income under subsection (1) of section 139] in an account in any such bank or institution as may be specified by the Central government. 11. Thus, the requirement of law is that for eligibility of deduction under section 54F of the Act investment in purchase of the new asset must be made within one year of transfer of the original asset and if the assessee is unable to invest in purchase of the new asset before filing of return of income, the amount shall be deposited in banks in specified capital gains scheme account, before due date of the filing in terms of section 139(1) of the Act. 12. In the instant case, the dispute is regarding the amount of payment made for purchase of the residential flat (new asset) before the due date of the filing of return of income. The contention of the assessee is that the due date of the filing of the return of income should be reckoned as under section 139(4) of the Act, whereas according to the Revenue, the due date of the filing of the return of income should be as per section 139(1) of the Act. 13. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1347984 10. 288250 01.08.2013 Canara Bank 823846 823846 7208252 14. As far as payment of ₹ 50,36,422/- made for purchase of new asset before 31/07/2012 is concerned, the Ld. Assessing Officer has also accepted in remand proceeding allowability of the sum of ₹ 50,36,422/- and thus, we hold that this amount is undisputedly allowable for considering deduction under section 54F of the Act. 15. Regarding the payment made by the assessee before 31/03/2014, Hon ble High Court of Rajasthan in the case of Shankar Lal Saini (supra) held that, where assessee, an individual deposited unutilized sale consideration in capital gains scheme within the due date of filing of belated tax return under section 139(4), the capital gains relief under section 54F of the Act would be allowable. In the case of K. Ramachandra Rao (supra), the Hon ble Karnataka ..... X X X X Extracts X X X X X X X X Extracts X X X X
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