Section 54/54F exemption cannot be disallowed merely for closure of capital gain account without NOC of AO

Ramesh Chander Nijhawan Vs ACIT (ITAT Delhi) The AO disallowed the deduction u/s 54F on the grounds that the capital gain account has been closed without the approval of the Assessing Officer and thus failed to satisfy the mandatory requirement of closing the account with due approval of the AO. The ld. CIT(A) concurred with the observation of the ld. CIT(A). It is not in dispute that an amount of Rs.40,00,000/- has been invested in the specified bonds, in this case REC Bonds and purchased house for Rs.82,50,000/-. Hence, the observation of ld. CIT(A) that the assessee is not eligible for clai...