Exemption U/s 54F cannot be denied for delay in filing Income tax returns

Smt. Amina Ismil Rangari Vs. ITO (ITAT Mumbai)

We have perused the statutory provision contemplated u/s 54F and are of the considered view that the same does not cast any statutory obligation on the part of assessee to file his return of income within the stipulated time period contemplated u/s 139 or 148 of the ‘Act’, as a precondition for entitling him to claim exemption under the said statutory provision.

We are of the considered view that the reference to the term ‘due date’ for furnishing of return of income u/s. 139 as contemplated in section 54F(4) is in context of the time limit within which the amount which had not been appropriated by the assessee towards making of investment in the purchase and/or construction of the new residential house is permitted to be deposited in the ‘Capital Gains Account Scheme, 1988’, which thereafter is to be withdrawn and utilized as per the terms contemplated in the said statutory provision. We are of the considered view that Section 54F, neither provides as a pre- condition the requirement of filing of the ‘return of income’ by the assessee within the stipulated time period, nor places any embargo as regards claim of such exemption in a case the ‘return of income’ filed by the assessee involves some delay.