Kavita Manoj Damani Vs ITO (ITAT Mumbai)
ITAT Mumbai held that denial of exemption under section 54 of the Income Tax Act on account of non-utilization of consideration not justified as utilization done within extended time limit for making the investment under the TOLA. Accordingly, exemption u/s. 54 granted and appeal allowed.
Facts- Assessee has preferred the appeal mainly contesting that CIT(A) has erred in upholding the finding of the Assessing Officer that the real / economic /deemed owner of the property (Flat No. 402A/402B, Glen Classic CHS, Hiranandani Gardens, Powai, Mumbai) was not the appellant but her husband, and further erred in denying the exemption u/s. 54 to the appellant in respect of the long-term capital gains arising from the sale of that property which has been assessed in the hands of the appellant.
Conclusion- Held that in terms of utilisation of capital gains and discharge of whole of purchase consideration by the assessee within the stipulated time frame as so mandated u/s 54, it has been submitted that the assessee has discharged the whole of the consideration well before 31/03/2021, the extended time limit for making the investment under the TOLA which the AO and the ld CIT(A) have failed to consider.
