Case Law Details
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 claim of exemption u/s 54 and u/s 54F is against the provisions of the Act. With regard to closer of the account without the NOC of the Assessing Officer, the broad provisions and compliance of the law surpass the mere default in not taking the prior permission of the ITO before closer of the account, especially when the amounts have been utilized for purchase of the house in accordance with the provisions of the Act within two years from the date of sale. Hence, the appeal of the assessee on this ground is allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
The present appeal has been filed by the assessee against the order of ld. CIT(A)-14, New Delhi dated 30.08.2019.
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