Rikant Pittie Vs ACIT (ITAT Delhi)
ITAT Delhi held that deduction under section 54F of the Income Tax Act duly available since funds are utilized within the extended period of time as per CBDT Circular No. 1/2023 dated 06.01.2023. Accordingly, appeal of revenue dismissed.
Facts- AO rejected the plea of the assessee for the claim of exemption u/s 54F of the Act and he observed that assessee has not utilised the sale consideration of Rs.42,88,55,000/- entirely for the purpose of new property to the extent of Rs.17,54,35,580/- was not utilised before the file of return of income u/s 139(1) of the Act and also not deposited the abovesaid amount in the capital gain scheme account. Accordingly, the deduction of Rs.45,81,48,145/- is restricted to Rs.28,54,59,401/- and the difference of Rs.17,26,88,744/- was disallowed.
CIT(A) allowed the claim of the assessee. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that the ld. CIT (A) has allowed the claim of the assessee u/s 54F of the Act to the extent of Rs.36,07,51,900/- based on the eligibility to the claim u/s 54F as per law and it is fact on record that CBDT has extended the claim vide CBDT Circular No.12/2021 and 1/2023. Based on the extended period, assessee has uilized the fund within the extended period of time. Therefore, he found that the claim of the assessee is proper. At the time of hearing, ld. DR of the Revenue vehemently objected that the ld. CIT (A) has not given proper opportunity to the Assessing Officer. In our considered view, assessee has submitted the relevant utilisation of funds in the residential property within the extended period of time allowed by the CBDT and it is only details of utilisation of funds which is appreciated by the ld. CIT (A) and ld. CIT(A) has co-terminus powers to adjudicate the issue as per the power granted u/s 251 of the Act. Therefore, we are inclined to allow the claim of the assessee and dismiss the grounds raised by the Revenue.
