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| The Tax Publishers2020 TaxPub(DT) 4516 (Bang-Trib) : (2020) 185 ITD 0547 INCOME TAX ACT, 1961
Section 54 Rule 46A
Where assessee failed to show that requirement of deposit of unutilized capital gain in a specified bank account did not arise for consideration, the cost of construction of new asset and period within which it was constructed required examination in light of additional evidence which ought to have been admitted under rule 46A(4). Thus, for consideration of same matter was remanded to AO for consideration afresh.
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Capital gains - Deduction under section 54F - Additional evidence in respect of cost of construction of new asset -
Assessee made a claim that the capital gain on sale of property was not eligible to capital gains tax because it had invested the sale proceeds in construction of house and was entitled to the benefit of deduction under section 54. AO denied said benefit claimed on the ground that assessee had not deposited unutilized capital gain in a specified bank account within due date for filing return of income as contemplated under section 54(2). Assessee sought to file report of registered valuer to show cost of construction also to file evidence to show that within a period of 3 years from date of transfer of capital asset, it had put up construction of residential house and, therefore, requirement of deposit of unutilized capital gain in a specified bank account did not arise for consideration. CIT(A) refused to admit additional evidence as it wa not filed before AO. Held: Cost of construction of new asset and period within which it was constructed required examination in light of additional evidence which ought to have been admitted by CIT(A) under rule 46A(4). Matter was remanded to AO for consideration afresh.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2014-15
IN THE ITAT, BANGALORE 'B' BENCH
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