Jignesh Jaysukhlal Ghiya Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that deduction under section 54 of the Income Tax Act towards Long Term Capital Gains admissible even when return is filed belated return of income under section 139(4) of the Income Tax Act.
Facts- The assessee is an individual and deriving income from Salary, House Property, Capital Gain and Other sources. AO has made addition of Rs.23,17,183/- as Long Term Capital Gain. The assessee sold a residential house on 09.01.2013 for Rs.45,00,000/- and then purchased a unfinished flat for Rs.25,60,000/- on 17.02.2014 and the sale considerations were paid between 04.08.2011 to 08.12.2011 (much before the sale of the original property). The assessee also entered into a Construction Agreement on 25.02.2014 to complete the construction of unfinished flat for a total consideration of Rs.51,65,000/-. This consideration was paid during 08.12.2011 to 16.02.2014. It is thereafter the assessee filed his belated Return of Income u/s. 139(4) of the Act and claiming exemption u/s. 54 (restricted to Rs.23,17,183/-). AO denied the benefit of Section 54 as the assessee failed to deposit unutilized amount of capital gain in separate account and also not filed the Return of Income as prescribed u/s. 139(1) of the Act.
