The Tax Publishers2020 TaxPub(DT) 4767 (Del-Trib)

INCOME TAX ACT, 1961

Section 54B

For the purposes of section 54B date of filing return of income for the purpose of utilization of amount for purchase/construction of residential house has to be construed with respect to due date prescribed for filing return of income under section 139(4) and, therefore, assessee could not be denied exemption under section 54F in respect of investments made within due date under section 139(4). Matter was remanded to AO to verify exact amount invested in purchase of agricultural land till the qualifying period.

Capital gains - Deduction under section 54B - Allowability as regards amount invested up to due date under section 139(4) -

Assessee claimed deduction under section 54B against long-term capital gain for investments made for purchase of agricultural land till due date of filing of return under section 139(4). AO held that only the amount utilized/invested till due date of the filing of return of income under section 139(1) was eligible for deduction under section 54B. Held: For the purposes of section 54B date of filing return of income for the purpose of utilization of amount for purchase/construction of residential house has to be construed with respect to due date prescribed for filing return of income under section 139(4) and, therefore, assessee could not be denied exemption under section 54F in respect of investments made within due date under section 139(4). However, since parties could not get verified exact amount invested in purchase of agricultural land till the qualifying period, therefore, issue was restored to AO for verification afresh.

Followed:Smt. Vatsala Asthana in ITA No. 5635/Del/2016 for assessment year 2012-13 : 2019 TaxPub(DT) 7168 (Del-Trib) and CIT-2 v. Jagriti Agrawal (2011) 15 Taxman.com 146 (P&H) : 2011 TaxPub(DT) 1961 (P&H-HC).

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2011-12



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