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| The Tax Publishers2020 TaxPub(DT) 3213 (Chen-Trib) INCOME TAX ACT, 1961
Section 54
Where assessee had substantially complied with provisions of section 54(1) by purchasing new house property within prescribed time period and a mere non-compliance of procedural requirement under section 54(2), i.e., some delay in depositing amount in CGAS, could not stand in way of assessee in getting benefit under section 54.
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Capital gains - Exemption under section 54 - Amount of capital gain was not deposited in CGAS within the due date of filing of return under section 139(1) -
Assessee received her share from the sale of an immovable property and claimed deduction under section 54, being the amount utilized towards a new house purchased. AO found that since the amount was not deposited in CGAS within the due date of filing of return under section 139(1), he did not allow assessee's claim of deduction. Held: For seeking benefit of deduction under section 54, assessee should have substantially complied with section 54(1). In this case, assessee should have purchased the residential house within two years from the date of transfer. Further, she had explained the reasons for not-depositing the amount in Capital Gains Accounts Scheme which is also not disputed. Since assessee had substantially complied with section 54(1), therefore, a mere non-compliance of a procedural requirement under section 54(2) itself cannot stand in the way of assessee in getting the benefit under section 54. Therefore, exemption could not be denied to assessee.
Followed:CIT v. K. Ramachandra Rao I.T.A. No. 47 of 2014 : 2015 TaxPub(DT) 1933 (Karn-HC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2016-17
INCOME TAX ACT, 1961
Section 54
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