Case Law Details
ITO Vs. Smt. Rekha Shetty (ITAT Chennai)
The issue under consideration is whether the benefit of section 54 of the Income Tax Act, being a beneficial provision, can be denied to the assessee due to non-compliance of procedural requirements?
ITAT states that for seeking benefit of deduction under Section 54 of the Act, the assessee should have substantially complied with section 54(1). In this case, the assessee should have purchased the residential house within two years from 19.10.2015, ie the date of transfer. She has utilized such sum towards purchase of the new house on 26.8.2016 itself. Further, she had explained the reasons for not-depositing the amount in Capital Gains Accounts Scheme which is also not disputed. Since the assessee has substantially complied with section 54(1), therefore, a mere non-compliance of a procedural requirement under section 54(2) itself cannot stand in the way of the assessee in getting the benefit under section 54. Therefore, ITAT do not find any reason to interfere with the order of the learned CIT (A). Accordingly, the appeal filed by the revenue dismissed.
FULL TEXT OF THE ITAT JUDGEMENT
The Revenue filed this appeal against the order of Commissioner of Income Tax (Appeals)-6, Chennai in ITA No. 32/CIT (A)-6/2018-19 dated 19.06.2019 for assessment year 2016-17. The assessee has filed a cross-objection in support of the same order of the CIT(Appeals). Hence, we heard both the appeal and the crossobjection together through Virtual Court and disposing them by this common order.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
