Case Law Details
Nandkishore Ramanlal Parikh- HUF Vs ITO (ITAT Ahmedabad)
When the assessee had invested the entire sale consideration in construction of a residential house within the three years from the date of transfer. Could he be denied exemption under section 54F on the ground that he did not deposit the said amount in capital gain account scheme before the due date prescribed u/s. 139(1) of the Act.
In the case of Ashok Kapasiawala vs. ITO, 63 taxamnn.com 284 also the assessee did not deposit the sale consideration in the bank account before the due date of filing of return. But otherwise purchase of house is within two years stipulated in section 54F(1) of the Act. It is not the case of the assessee that she has purchased beyond the period as contemplated in section 54F(1). The only failure is, she has not deposited the sale consideration in capital account. This condition has not been considered as mandatory by the Hon’ble Karnataka High Court. So Where assessee did not deposit sale consideration in the bank account maintained under the capital gains scheme before the due date of filing of return but otherwise purchased new house within two years, as stipulated in section 54F(1), then deduction under section 54F could not be denied to assessee.
FULL TEXT OF THE ITAT JUDGEMENT
Assessee is in appeal before the Tribunal against order of the ld.CIT(A)-5, Ahmedabad dated 5.1.2017 passed for the Asstt.Year 2013- 14.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
