Shri Arun Kumar Jain Vs. ITO (ITAT Delhi)
The A.O. noted that as per Section 54(2) of the I.T. Act, the amount of capital gain, which is not utilized by him for the purchase of new asset before the date of furnishing the ITR under section 139, shall be deposited by him, before furnishing such return in an account in any such bank or institution as may be specified in the Official Gazette, shall be accompanied by proof of such deposit. In this case, assessee has not deposited the unutilized amount in capital gain account before filing of ITR of 2014-2015 i.e., 26th July, 2015, so benefit of capital gain to the tune of unutilized amount and not deposited in capital gain account will not be given to the assessee and it will be charged to tax under section 45 of the I.T. Act. The A.O. accordingly, made addition of Rs. 12,93,349/- under the head “Long Term Capital Gains”.
The assessee challenged the addition before the Ld. CIT(A), in which, the assessee briefly highlighted that due date of filing of the return for assessment year under appeal under section 139(1) was 31st July, 2014. The assessee however, filed the return of income on 26th July, 2015. It was submitted that assessee has paid Rs. 75 lakhs to the vendor instead of Rs. 50 lakhs mentioned by the A.O. in the assessment order. The additional amount of Rs. 25 lakhs was paid vide cheque No. 000002 dated 30th July, 2014 drawn on HDFC Bank, East of Kailash, New Delhi. Photo copy of the cheque was also filed. It was, therefore, submitted that assessee duly utilized the capital gain for purchase of new asset before the due date of furnishing of the ITR under section 139 as per the conditions provided under section 54(2) of the I.T. Act. It was, therefore, submitted that since assessee utilized Rs. 75 lakhs for the purpose of purchase of new residential property, therefore, addition should be deleted.
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