Chandra Pal Singh Vs ITO (ITAT Agra)
Bank Balance Is Not Unutilised Capital Gain by Default: ITAT Restores ₹16.19-Lakh Section 54 Disallowance for Verification of Construction Payments
Property Sold & Section 54 Claimed
The assessee filed his return for AY 2014-15 on 28.08.2014. The case was selected for limited scrutiny to verify capital gains arising from the transfer of immovable property.
The assessee had sold property situated at Belaganj, Agra, to three purchasers through a registered sale deed dated 06.06.2013 for consideration of ₹61 lakh.
The stamp valuation authority adopted a value of ₹91,27,000, which, according to the AO, was accepted by the assessee. After claiming indexed cost of acquisition of ₹28,17,000, the capital gain was computed at ₹63,10,000.
The assessee claimed that the capital gain had been invested in construction of a residential house at Dhakran Crossing, Agra. The total investment claimed was ₹64,67,940.
In support, the assessee furnished a valuation report dated 30.09.2014 prepared by Shiromany Architects.
AO Finds ₹16.19 Lakh Unappropriated
The AO examined the amount & timing of expenditure claimed toward the new house.
He concluded that ₹16,19,133 had neither been utilised for construction before the due date for filing the return u/s 139(1) nor deposited under the Capital Gains Accounts Scheme as required u/s 54(2).
