INCOME TAX ACT, 1961

Section 54F

Capital gains - Deduction under section 54F - Allowability - Payment made by assessee towards purchase/construction of residential house up to due date of filing of return of income prescribed under section 139(4) would be allowable for considering deduction under section 54F.

Revenue denied assessee's claim of deduction under section 54F on the ground that the assessee failed to deposit unutilized amount of capital gain under the capital gains scheme before due date of filing return of income, and thus, no claim of deduction under section 54 could be allowed. Assessee contended that the date of filing return of income under section 139(1) for the purpose of utilization of the amount for purchases/construction of residential house had to be construed with reference to the due date prescribed for filing the return of income under section 139(4).Held: For the purpose of utilization of the amount for purchases/construction of residential house, the date of filing of return of income under section 139(1) had to be construed with reference to the due date prescribed for filing return of income under section 139(4). Therefore, the payment made by the assessee towards purchase/construction of residential house up to the due date of filing of the return of income prescribed under section 139(4) would be allowable for considering deduction under section 54F. Accordingly, the AO was directed to consider the amount utilized by the assessee for purchase of the house till the time allowable under section 139 (4), for deduction under section 54F.

Followed:Smt. Vatsala Asthana v. ITO [ITA No. 5635/del/2016 for the assessment year 2012-13 vide Order, dated 6-8-2019] : 2019 TaxPub(DT) 7168 (Del-Trib).

REFERRED :

FAVOUR : Partly in favour of assessee/In assessee's favour by way of remand.

A.Y. :

SUBSCRIBE FOR FULL CONTENT

OR Try Reload the Page