TMI Blog2020 (5) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... as claimed exemption u/s 54F of the Act. Therefore, irrespective of the date when the release deed has been registered, there is a transfer of shares during the PY 2002-03 as far as assessee is concerned. Therefore, I do not find any reason to interfere with the order of the AO and CIT(A) holding that the transfer has taken place during the PY 2002-03 relevant to AY 2003-04. Grounds 2 and 3 are thus rejected. Exemption from long term capital gain u/s.54F - Assessee has claimed that he had invested upto ₹ 45,42,000/- before filing of the return of income. The assessee has filed details of such expenditure before the Tribunal by way of additional evidence. Therefore deem it fit and proper to admit such additional evidence and remand it to the file of AO for verification of the same. After verification, the AO shall recompute the eligible exemption u/s.54F of the Act and the un-utilized capital gain shall be brought to tax as provided under the proviso to Section 54F of the Act. - ITA No. 466/Hyd./2016 - - - Dated:- 19-5-2020 - Smt. P. Madhavi Devi, Judicial Member For the Assessee : Shri H.Srinivasulu, A.R. For the Revenue: : Sh. R.S. Arvindakshan, D.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e misplaced. When asked about credit of the sale consideration, the assessee submitted that he had deposited the same in Sindh Urban Co-Operative Bank Ltd. P.G.Road Branch, in S.B.A/c no.1824. When the assessee was asked to explain the investment in residential house, the assessee, vide letter dated 24.09.2004, stated that an amount of ₹ 35,41,967/- was spent on construction of the pent house on Vinila Mansion and this was in addition to the basic cost of ₹ 7 lakhs paid to the builder. The assessee also furnished the details of the total sale consideration of ₹ 98 lakhs received on sale of shares and with regard its utilization, the assessee furnished the following details: 1. Cost of terrace area of 400 sq.ft. ₹ 7,00,000/- 2. Cost of construction of pent house on the above Terrace upto 31.3.2003 : ₹ 35,42,000 Amount spent o or after 1.4.2003 : ₹ 10,00,000 ₹ 45,42,000 3. Amount given to his son Sri I.Krishna Prasad ₹ 26,33,000 4. Amount given t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the property situated at 4-1-898, Boggulkunta, Hyderabad in favour of the transferee i.e. M/s Asrani Inns and Resorts Pvt.Ltd. The AO also considered the affidavit filed by the Director of M/s JM Entertainment Pvt. Ltd. who described himself as the Director of M/s Asrani Inns Resorts P Ltd. filed before the Hon ble High Court of AP praying for release of the release deed. AO also considered the Writ Petition Nos.576, 577 and 578 filed by M/s Asrani Inns Resorts P Ltd. and common order of Hon ble High Court of AP dismissing the Writ Petitions and MOU executed on 20.11.2002 between assessee and 11 others and M/s JM Entertainment Pvt. Ltd. 2.4. After considering all the documents, the AO held that the assessee individual and others held the investment in immovable property belonging to M/s Asrani Inns and Resorts Pvt.Ltd. by way of shares and since the rights in shares were released by way of release deed and supplementary MOU dated 20.12.2002 and assessee and others have received the sale consideration which has been deposited by the assessee into his bank account, there is a transfer during the PY 2002-03 itself. The AO also observed that the assessee himself has declared t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an be invested in construction of a house within a period of 3 years from the date of transfer of original asset and the uninvested capital gain if any can be brought to tax only after the expiry of three years. In support of this contention, he placed reliance on the following case laws. i. Sh.K.Ramachandra Rao (ITA no.47/2014 ITA 46/2014)Karnataka H.C. ii. Sh. Vijay Mahipal (ITA 502/Kol/2017 AY 2013-14) ITAT Kolkata iii. Sh. Sadarmal Kothari and another (2008) 302 ITR 286 (Mad)Mrs. Seetha Subramaniam (1996) 59 ITD 94 ITAT (Mad) iv. Smt.Selvi Venkatsubramani (ITA 1052/Bang/2013) ITAT Bangalore v. CBDT Circular no.672 of 16/12/93 vi. Income Tax Circular 471 of 15/10/1986 5.2. Ld.DR, on the other hand, relied upon orders of the authorities below and submitted that the assessee had entered into a release deed and also a supplementary release deed by which assessee has released his rights in the property and has also received the entire sale consideration. He submitted that there is no litigation with regard to transfer of shares or the property, but the litigation was between the purchaser and the registration authorities. He also drew our attention to the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t invested can be brought to tax only on the lapse of 3 years. I find that the proviso to Section 54F of the Act reads as under: Section 54F. . Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then,- (i) the amount by which- (a) the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of the new asset as provided in clause (a) or, as the case may be, clause (b) of sub-section (1), exceeds (b) the amount that would not have been so charged had the amount actually utilised by the assessee for the purchase or construction of the new asset within the period specified in sub-section (1) been the cost of the new asset, shall be charged under section 45 as income of the previous year in which the period of three years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw the unutilised amount in accordance with the scheme aforesaid . Thus, these decisions are applicable to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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