INCOME TAX ACT, 1961

Section 54F

Capital gains - Deduction under section 54F - Allowability - Deposits made in capital gains scheme account beyond the date specified in section 139(1) but before the date specified in section 139(4)

AO denied assessee's claim of deduction under section 54F in respect of deposits made in capital gains scheme account beyond the date specified in section 139(1). Held: It had been consistently held by various High Courts that even if sale consideration received on transfer of capital asset is deposited into capital gain bank account before the extended date of filing return of income under section 139(4), the deduction under section 54F could not be denied. In instant case, since sale consideration received on transfer of capital asset was already deposited by assessee in capital gains scheme account before the due date for filing return of income under section 139(4), the assessee would be entitled to claim deduction under section 54F.

Distinguished:Tarulata Shyam v. CIT (1977) 108 ITR 345 (SC): 1977 TaxPub(DT) 0899 (SC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2010-11

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