Case Law Details
Dipal Suresh bhai Patel Vs ITO (ITAT Ahmedabad)
The case of the Revenue is this that the unutilized amount of sale consideration since not deposited in the capital gain account within the time limit prescribed under Section 139 of the Act, benefit of claim of capital gain under Section 54F cannot be extended to the assessee.
From a plain reading of Section 54(2) of the Act it is clear that only Section 139 is mentioned in the context that the unutilized portion of the capital gain on the sale of property used for residence should be deposited before the date of furnishing the return of tax under Section 139 of the Act. Therefore, Section 139 cannot be confined only to the provisions of the Section 139(1), but it includes all the sub section of Section 139 of the Act.
The Assessing Officer rejected the assessee’s claim of exemption under Section 54 on the ground that the assessee failed to comply with section 54 by not depositing the unutilized amount of capital gain in the Capital Gains Deposit Scheme, 1988 within the stipulated time of furnishing the return of income-tax under Section 139.
we have carefully considered the judgment passed in the matter of ITO vs. Nilima Abhijit Tannu passed by the ITAT, Mumbai Benches, reported in [2019] 106 Taxmann.com 256 (Mumbai – Trib.) where the same issue has cropped up and it was observed that when the unutilized portion of capital gain on sale of capital asset is required to be deposited before the date of furnishing of return of tax under Section 139, in such a situation Section 139 cannot be meant only Section 139 but it means all sub-Sections of Section 139.Therefore the Ld. Tribunal has been pleased to hold that the assessee has fulfilled condition for deduction under Section 54F within extended time limit of filing of return under Section 139(4) and the claim of the assessee cannot be negated merely he did not deposit amount in the said scheme before the expiry of the time period provided under Section 139(1) of the Act.
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