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TMI Blog2021 (6) TMI 982X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee filed appeal with the following grounds of appeal. 2. Grounds of Appeal : 1. That under the facts and circumstances of the case the orders passed u/s.143(3) of the I.T. Act are against the facts of the case and provisions of law. 2. The learned Commissioner of Income Tax(A)(In short "CIT(A)"),under the facts and circumstances of the case, is not correct in confirming the addition made on account of LTCG and STCG of Rs. 4,91,000/- and Rs. 27,30,000/- respectively as the addition confirmed does not stand the test of law. 3. The learned CIT(A) is not correct in dismissing the appeal without considering the submission made and evidences filed, if he had done so, he would not have resorted to confirming the addition made wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case are that the assessee is an individual, filed his return of income on 13.10.2010 admitting total income of Rs. 2,44,770/- and agricultural income of Rs. 1,25,000/-. The assessee expired on 12.06.2013 subsequent to completion of assessment proceedings and legal heir, Smt.R.Venkata Dhana Lakshmi was brought on record. The assessment was completed u/s 143(3) on total income of Rs. 37,96,571/-. In the assessment proceedings, the AO made the addition of Rs. 4,91,800/- on account of long term capital gains and Rs. 27,30,000/- on account of short term capital gains. During the assessment it was found that the assessee had purchased the vacant site of 300 sq.yards on 03.03.2005 which was subsequently rectified by deed of correction dated 13.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO. The assessee contended that since, the capital gains tax resulted in 'Nil' income, he did not mention the same in the return of income. However, the AO found no merit in assessee's explanation, since, the assessee has neither purchased the flat before the end of the financial year nor made deposit in the specified account. The AO arrived at the sale consideration of land @7000/- per sq.yard and structure rate @Rs. 600/- per sq.feet and thus determined total value of the undivided share of land of 96 sq.yards at Rs. 6,72,000/- and the cost of acquisition of the land was worked out to Rs. 1,80,200/- inclusive of stamp duty and the indexed cost of acquisition at 480 points and worked out the long term capital gains of Rs. 4,91,800/- as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) and the Ld.CIT(A) confirmed the order of the AO and dismissed the appeal of the assessee. 7. Aggrieved by the order of the Ld.CIT(A), the assessee is in appeal before this Tribunal. During the appeal hearing, the Ld.AR vehemently supported the grounds of appeal and argued that since, the assessee has invested the entire long term capital gains in acquiring the new flat , the assessee is entitled for deduction u/s 54F on long term capital gains. The Ld.AR further stated that thought the assessee has not made the claim in the return of income, the claim was made before the AO as well as the Ld.CIT(A) and the Ld.CIT(A) is not barred from entertaining the additional claim as per the decided case laws. Hence, argued that the Ld.CIT(A) oug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from the end of the relevant financial year as specified u/s 54F of the act. Though the assessee has not made the deposit in specified account, it is observed form the order of the AO that the assessee has made the deposit in the bank account and used the said amount only for the purpose of acquiring the new asset. Hon'ble courts in similar circumstances held that, the assessee would be given the benefit of deduction u/s 54F of the Act, since, the deduction u/s 54F is beneficial provision and introduced with an intention to encourage the housing / accommodation across the country. This view is supported by the decision of coordinate bench of ITAT, Bangalore in Ramaiah Dorairaj.v.Income Tax Officer, ward 4(2)(2), Bangalore. [2021] 124 tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t deposit the said amount in capital gains account scheme before 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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