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| The Tax Publishers2020 TaxPub(DT) 4549 (Pune-Trib) INCOME TAX ACT, 1961
Section 54F
Where Claim of assessee of having invested the amount of net consideration in the construction of new house within the stipulated period of 3 years from the date of transfer of the original assets was not verified either by AO or by CIT(A), therefore, matter was remanded back to AO for the limited purpose of such verification.
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Capital gains - Exemption under section 54F - No deposit was made by assessee in specified bank account as required by provisions of sub-section (4) of section 54F - Claim of assessee of having invested the amount of net consideration in the construction of new house within the stipulated period
Assessee sold an immovable property jointly owned by him and claimed exemption under section 54F on the ground that the investment to that extent was made by the assessee in the construction of house within a period of 3 years from the date of sale of the immovable property. AO noticed that due date for filing of the return of income by the assessee for the year under consideration was 31-7-2011 and since no investment was made by assessee in construction of house till that date, he was required to deposit the amount of net consideration which had remained unutilized in the specified bank account as per provisions of sub-section (4) of section 54F. Since no such deposit was made by assessee in specified bank account as required by provisions of sub-section (4) of section 54F, the claim of the assessee for exemption under section 54F was disallowed by AO. Held: High Court in the case of CIT v. K. Ramachandra Rao [(2015) 56 taxmann.com 163 (Karn)] had clearly held that if investment in construction of new house was made by assessee within the stipulated period of 3 years, then section 54F(4) was not at all attracted and assessee could not be denied the benefit of exemption under section 54F merely because he had not deposited the amount in specified bank account as stipulated. Claim of the assessee of having invested the amount of net consideration in the construction of the new house within the stipulated period of 3 years from the date of the transfer of the original assets was not verified either by AO or by CIT(A). Therefore, matter was remanded back to AO for the limited purpose of such verification.
Followed:CIT v. K. Ramachandra Rao (2015) 56 Taxmann.com 163 (Karn).
REFERRED :
FAVOUR : Matter remanded.
A.Y. :
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