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TMI Blog2021 (8) TMI 461X X X X Extracts X X X X X X X X Extracts X X X X ..... o law, equity, weight of evidence, probabilities, facts and circumstances of the case. 2. The learned CIT[A] is not justified in upholding the disallowance of deduction under Section 54F of the Income Tax Act, 1961 under the facts and in the circumstances of the appellant's case. 3. The learned CIT[A] ought to have appreciated that the appellant had invested proceeds from capital gains in construction of residential property as required under Section.54F of Income Tax Act, 1961. 4. The learned CIT [A] ought to have appreciated that the judgement of the Hon'ble Karnataka High Court Commissioner of Income tax Vs. K.Ramachandra Rao 56 Taxmann, 163(Karnataka), Commissioner of Income Tax Vs. P.R.Seshadri 329 ITR 377 ( Karnataka) re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ouse, Mr. Mirle Varadaraj. Accordingly the assessee claimed this amount as an investment in the residential house for exemption u/s. 54F of the Income-tax Act, 1961 [the Act]. However, the AO denied the said exemption on the reason that the asse had not deposited the net sale consideration in the capital gain account scheme on or before the due date for filing return of income u/s. 139(1) of the Act. On appeal, the CIT(Appeals) confirmed the order of AO. Against this, the assessee is in appeal before us. 4. We have heard both the parties and perused the material on record. The main contention of the ld. AR is that the assessee has utilized Rs. 3,37,47,415 out of the net consideration of Rs. 4,42,12,000 in the construction of new residenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kar) as follows:- "A careful reading of section 54 as well as section 54EC makes it clear that when capital gains arise from the transfer of long term capital asset to an assessee and the assessee has, within the period of one year before or two years after the date on which the transfer took place purchase or has, within the period of three years after the date of transfer, construct residential house, then instead of capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the provisions made under the section which grants exemption from payment of capital gains as set out thereunder. Therefore, in the entire section 54, the purchase to be made or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n for acquisition of the property as well as bonds. The source for acquisition of the property and the bonds is the sale consideration. It is not in dispute. Once the sale consideration is utilized for the purpose mentioned under sections 54 and 54EC, the assessee is entitled to the benefit of those provision. As the entire consideration has flown from the assessee and no consideration has flown from her husband, merely because either in the sale deed or in the bond her husband's name is also mentioned, in law he would not have any right. In that view of the matter, the assessee cannot be denied the benefit of deduction of the aforesaid amount. The Tribunal, on proper appreciation of the material on record, has rightly allowed the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gain account scheme within the due date prescribed u/s. 139(1) of the Act, the assessee is entitled for exemption u/s. 54F of the Act if the assessee has invested the net consideration in accordance with the provisions of section 54F of the Act in acquiring or construction of new residential house. Therefore, the contention of the ld. DR that the assessee has not deposited the amount in the capital gain account scheme as stipulated and not entitled to the benefit of exemption, even though she has invested the money in construction of new residential house is not correct. On this reason, the revenue cannot deny the benefit of exemption u/s. 54F of the Act. 8. The next contention of the ld. DR is that the assessee invested in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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