INCOME TAX ACT, 1961

Section 54F

Capital gains - Deduction under section 54F - Allowability when consideration which is not appropriated/utilized to purchase/construct new house before furnishing of return under section 139(1) is deposited in Capital Gains Account Scheme -

Revenue challenged order of CIT(A), wherein additional ground of exemption under section 54F with reference to long-term capital gains on sale of land was allowed by CIT(A) without giving an opportunity to AO to contest additional claim/evidence produced by assessee. Held: As decided in case of Humayun Suleman Merchant v. CCIT, wherein it was held that exemption under section 54F is allowable only when consideration which is not appropriated/utilized to purchase/construct new house before furnishing of return under section 139(1) is deposited in Capital Gains Account Scheme. Thus, ground raised by revenue was allowed.

Followed:Humayun Suleman Merchant (2016) 387 ITR 421 (Bom) : 2016 TaxPub(DT) 3850 (Bom-HC)

REFERRED : R. Sai Bharathi v. J. Jayalalitha & Ors. 2004 (2) SCC 9 (SC), Jaw Ajee Naganatham v. Revenue Divisional Officer 1994 (4) SCC 595 (SC), Periyar and Pareekanni Rubbers Ltd. v. State of Kerala (1991)4 SCC 195, Tribeni Devi v. Collector Ranchi 1972 (1) SCC 480, Shalini Vaman Godbole and The Solapur Municipal Corporation, Solapur v. Special Land Acquisition Officer, Mahadeo Ramchandra Mate (deceased) and Anr. [F. Appeal No. 182 of 1996 decided on 22-6-2009]

FAVOUR : Against the assessee.

A.Y. : 2010-11

INCOME TAX ACT, 1961

Section 55A

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