TMI Blog2021 (6) TMI 623X X X X Extracts X X X X X X X X Extracts X X X X ..... l purposes. - ITA No.1395/Bang/2019 - - - Dated:- 18-6-2021 - Shri George George K., Judicial Member And Shri B.R. Baskaran, Accountant Member For the Appellant : Shri Ravishankar, A.R. For the Respondent : Shri Priyadarshi Mishra, D.R. ORDER PER B.R. BASKARAN, ACCOUNTANT MEMBER: The assesse has filed this appeal challenging the order dated 29.3.2019 passed by Ld. CIT(A) 9 Bengaluru and it relates to the assessment year 2012-13. The assesse is aggrieved by the decision of Ld. CIT(A) in partially confirming the disallowance made by the A.O. u/s 54F of the Income-tax Act,1961 ['the Act' for short]. 2. The facts relating to the issue are stated in brief. The assessee sold an ancestral property on 11.8.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 41.87 lakhs. 3. Before Ld. CIT(A), the assessee contended that it has fully utilized the sale consideration in purchasing a new flat within the period of two years from the date of sale of original asset, being the period prescribed u/s 54F of the Act for purchase of new house. The assessee also contested the cost of property as on 1.4.1981 adopted by the A.O, while computing long term capital gain. The Ld. CIT(A) granted relief with regard to the cost of property as on 1.4.1981. However, he concurred with the view taken by the A.O. with regard to the claim of deduction made u/s 54F of the Act. The Ld. CIT(A) took the view that the provisions of section 54F of the Act should be interpreted strictly. In this regard, he took the suppo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he capital gain scheme would not affect the claim made u/s 54F of the Act. On the contrary, the Ld DR supported the order passed by Ld CIT(A). 5. We heard the parties and perused the record. We notice that an identical issue has been examined by the co-ordinate bench in the case of Ramiah Durai Raj (supra). For the sake of convenience, we extract below the relevant observations made by the coordinate bench in the case of RamaiahDurai Raj (supra). 4. The learned Authorised Representative submitted that the assessee has finally invested the net sale consideration in the construction of new residential house within the stipulated period though the assessee was failed to keep the net sale consideration in Capital Gain Scheme Account. Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to invest within a period of one year before or two years after the date of transfer took place purchased or has within a period of three years after the sale date constructed, one residential house in India, the capital gain shall be exempted from the tax. If the assessee has not complied with these requirements and not appropriated the net sale consideration towards purchase of new asset or constructed new residential house than the said net sale consideration to be deposited in prescribed capital gains scheme as notified by the Central Government. According to Id. DR if the assessee not complied with the conditions laid down under section 54F( I) of the Act or 54F(4) of the Act, the assessee is not entitled for exemption Under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the due date prescribed under section 139(1) of the IT Act ? This was answered by Hon'ble High Court as follows : As is clear from Sub Section (4) in the event of the assessee not investing the capital gains either in purchasing the residential house or in constructing a residential house within the period stipulated in Section 54F( 1 ), if the assessee wants the benefit of Section 54F, then he should deposit the said capital gains in an account which is duly notified by the Central Government. In other words if he want of claim exemption from payment of income tax by retaining the cash, then the said amount is to be invested in the said account. If the intention is not to retain cash but to invest in construction or any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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