Case Law Details
ITO Vs Arun Gupta (ITAT Chennai)
ITAT Chennai held that benefit of deduction under section 54 of the Income Tax Act cannot be denied for mere technical breach when the assessee has satisfied all the prescribed conditions.
Facts- During the financial year, the appellant along with his siblings sold a residential property on 23.03.2016 for a consideration of Rs. 2,84,00,000/- and received total consideration of Rs. 3,50,00,000/- in his bank account which includes his share of consideration and consideration of his siblings. The assessee has computed LTCG from sale of property and claimed exemption u/s. 54 by paying a sum of Rs. 50 lakhs to the builder as advance money for purchase of property and also deposited a sum of Rs. 1,69,61,612/- in a capital gain deposit account scheme. The assessee had also claimed deduction u/s. 54EC of the Act for Rs. 50 lakhs towards investment in NHAI bonds.
During the course of assessment proceedings, AO noticed that deduction claimed by the assessee u/s. 54 of the Act for a sum of Rs. 1,69,61,612/- is not eligible because, the assessee has failed to deposit unutilized amount of capital gains in capital gains deposit account scheme on or before due date of filing of return u/s. 139(1) of the Act. Therefore, rejected the claim of the assessee and disallowed deduction claimed u/s. 54 of the Act.
Being aggrieved by the assessment order, the assessee preferred appeal before the CIT(A). CIT(A) allowed the appeal. Being aggrieved, the present appeal is filed by the revenue.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
