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TMI Blog2022 (8) TMI 1082X X X X Extracts X X X X X X X X Extracts X X X X ..... AO in denying exemption u/s. 54F of the Act. 3. Brief facts relating to the issue on hand are that the assessee is an individual and derives income from retail business in footwear and from commission. The assessee filed its return of income declaring a total income of Rs.2,10,900/- and the same was processed u/s. 143(1) of the Act. Under scrutiny, notices u/s. 143(2) and 142(1) of the Act issued. In response to the said notices, an authorized representative representing the assessee attended before the AO and filed necessary information, documents etc. On an examination of such details filed by the assessee, the AO was of the opinion that the assessee is not entitled to claim exemption u/s. 54F of the Act as the assessee failed to invest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... phs, he argued that sub-section (4) of section 54F of the Act is not attracted if the assessee invests the sale consideration derived from the transfer either in purchasing the property or constructing the residential house within the period stipulated in section 54F(1) of the Act. He submits that the assessee invested the capital gains in a new flat within the period of one year from the date of sale of capital asset. He argued that the order of CIT(A) in confirming the AO in denying the claim u/s. 54F of the Act is not justified and drew our attention to the order of Kolkata Tribunal in the case of Sunayana Devi Vs. ITO reported in [2017] 86 taxmann.com 72 (Kolkata-Trib.) and argued that the assessee is entitled to claim exemption u/s. 54 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by him towards purchase of a new flat on 06-02-2015 which is undoubtedly within the stipulated period i.e. two years after the date on which the transfer took place u/s. 54F(1) of the Act, but, according to the AO the assessee must have deposited the capital gains in the account specified by the Central Government before the due date for filing return of income u/s. 139(1) of the Act. The contention of ld. DR is that the assessee has to deposit the said capital gains in the capital gain account before filing the return of income failing which provisions under sub-section (4) of section 54F of the Act is attracted. Further, he contends that the assessee did not appropriate the net consideration towards the purchase of a new asset within o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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