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TMI Blog2021 (1) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee is an individual. During the relevant assessment year assessee sold 3000 equity shares in a company called Aditya Auto Products Private Limited for a total consideration of Rs. 2,40,00,000. For the assessment year 2016-2017, the return of income was filed declaring total income of Rs. 3,02,110. In the return of income, the assessee had declared long term capital gains of Rs. 2,05,39,185 on sale of aforementioned shares. Out of the above consideration, the assessee had claimed exemption u/s 54EC and 54F of the I.T.Act amounting to Rs. 50,00,000 and Rs. 1,55,39,185, respectively. As regards the claim of exemption u/s 54EC of the I.T.Act, there is no dispute. With regard to exemption u/s 54F of the I.T.Act, the A.O. during the cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00,000/- in the REC bonds. A sum of Rs,1,75,83,000/- was paid to the builder from the capital gains account which was confirmed by the builder in reply to the AO's notice u/s 133(6). During the assessment proceedings, the appellant had submitted to the AO a copy of the builder's intimation regarding registration charges to be paid amounting to Rs. 10-12 lakhs. However, even during appellate proceedings, no proof has been submitted of the registration having been completed or this amount having actually been spent. In view of the same, the balance amount of Rs. 1,90,00,000/- out of the consideration received cannot be considered to have been fully utilized towards construction of the new asset and only the sum of Rs. 1,75,83,000/- is to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see has preferred this appeal before the Tribunal. The assessee before the Tribunal has produced the proof of payment of registration charges. The assessee also furnished the proof of total payment of Rs. 1,80,34,321 and letter from the builder confirming the same is also placed on record. The learned AR contended that apart from the above amounts the assessee has also paid further sum of Rs. 33,26,923 towards the construction of the property. Therefore, it was submitted that the assessee has utilized the entire sale consideration of shares towards construction / purchase of a residential property. It was contended that delay in completion of the registration of the property cannot be attributed to the assessee and the assessee was prevente ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cases of CIT v. Sri.K.Ramachandra Rao in ITA No.46 and 47 of 2014 and 494 and 495/2013 (judgment dated 14th July, 2014) and CIT & Anr. v. Sambandam Udaykumar [(2012) 345 ITR 389 (Kar.)], it is clear that the assessee would be entitled to exemption u/s 54F of the I.T.Act with regard to utilization of sale proceeds for the purpose of construction of a residential property within a period of three years from the date of sale of old asset. In the instant case there is no clarity as regards the date of utilization of the amounts apart from Rs. 1,75,83,000. It is also not clear when the assessee had incurred the expenditure of Rs. 10 lakh for registration of the property. In the light of these facts, I am of the view that the matter needs to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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