Advertisement
Advertisement
Skip to content
Follow Us on
Advertisement
TOP STORIES
Income Tax

Amount invested in capital gain scheme cannot be taxed in the year of investment

Case Law Details

TaxGuru Citation
2022 taxguru.in 2142
Case Name
ACIT Vs Shri Sandeep Taneja (ITAT Delhi)
Date of Judgement/Order
Only available for paid members
Related Assessment Year
2015-16
Advertisement

ACIT Vs Shri Sandeep Taneja (ITAT Delhi)

The amount once invested in the capital gain scheme cannot be brought to tax in the year of investment itself without considering the utilization within the period allowed under the said scheme.

Facts-

The assessee had declared Long Term Capital Gain of Rs. 5,60,56,490/- on sale of his immovable property located in Chikambarpur, Loni (U.P). He also had deposited Rs. 6,00,00,000/- in the Capital Gain Account (opened in Bank of India) on 23.03.2015.

The Ld. Assessing Officer had passed the assessment order u/s 143(3) on 24.12.2017, thereby determining the total income of the assessee at Rs. 6,82,31,550/-

The Ld. CIT(A) has allowed the appeal on the basis that assessee is eligible for benefit of provisions of Section 54F of the Act in view of investing Rs 6 Cr. in the prescribed Capital Gains Account Scheme and on account of his having fulfilled other relevant conditions.

Being aggrieved, the Revenue preferred the present appeal.

Conclusion-

Held that the Bench is of considered opinion that the ld. CIT(A) after taking into consideration, the entire facts of the case viz., date of purchase, date of sale, date of investment in capital gain scheme held that the assessee is eligible for claim u/s 54F of the Income Tax Act, 1961. Notwithstanding anything, the amount once invested in the capital gain scheme cannot be brought to tax in the year of investment itself without considering the utilization within the period allowed under the said scheme.

FULL TEXT OF THE ORDER OF ITAT DELHI

The appeal no ITA No.3126/Del/2019, has been preferred by the Revenue against order dated 17.01.2019 in appeal no. 10296/17-18 for the assessment year 2015-16 passed by Ld. Commissioner of Income Tax (Appeals)-19, New Delhi, in appeal pending before it against the order dated 29.12.2017 of Assessing officer, Assistant Commissioner of Income Tax, Circle -56 (1), New Delhi.

Assessee has also filed Cross Objection No. 136/Del/2019.

2. The facts in brief are that the assessee is an individual, who claimed he was residing for the last so many years with his family in the residential H. No. C-228, Surajmal Vihar, Delhi- 110092 (which is owned by assessee’s wife-Smt. Meena Taneja) He had filed his ITR for A.Y. 2015-16 declaring total income of Rs. 1,17,42,240/- as under :-

Paid content

Become a Premium Member, or log in if you are already a Premium member.

Advertisement

Join TaxGuru's Network for the latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.