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The assessee along with legal heirs received his share on sale of property made on 23rd December, 2011, but he received on the consideration on 16.01.2012. The assessee acquired a land for Rs. 59,95,000 on 05.03.2012 and constructed a residential property on the same within the time stipulated under Section 54F of the Act and claimed deduction under Section 54F in the return filed for assessment year 2012-13. The A.O restricted the exemptions to the expenses incurred till 31.07.2012, as the assessee failed to invest unutilized portion in Capital Gains Deposit Scheme. Aggrieved against the order of Ld. A.O., the assessee preferred an appeal before the CIT(A). The learned CIT(A) dismissed the appeal. Aggrieved against that order, the assessee filed this appeal before the Tribunal.

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Sec. 54F of Income Tax Act, 1961— Exemption —Mere non compliance of a procedural requirement under Section 54(2) itself cannot stand in way of assessee in getting benefit under Section 54.

Facts: Assessee is a salaried individual and assessee along with legal heirs received his share on sale of property made on 23rd December, 2011, but he received on the consideration on 16.01.2012. Assessee acquired a land for Rs. 59,95,000 on 05.03.2012 and constructed a residential property on the same within the time stipulated under Section 54F and claimed deduction under Section 54F in the return filed for assessment year 2012-13. A.O restricted the exemptions to the expenses incurred till 31.07.2012, as the assessee failed to invest unutilized portion in Capital Gains Deposit Scheme. Aggrieved against the order of A.O.,assessee preferred an appeal before CIT(A). CIT(A) dismissed the appeal. Aggrieved against that order, the assessee filed this appeal before the Tribunal.

Held, that after examining the facts and case laws relied on by the assessee, it was found that mere non compliance of a procedural requirement under Section 54(2) itself cannot stand in way of assessee in getting benefit under Section 54, if he is, otherwise, in a position to satisfy that mandatory requirement under Section 54(1) is fully complied with within time limit prescribed therein. Therefore, we direct the A.O. to allow the total investments made by the assessee under Section 54F after satisfying whether the impugned investment was utilized for the construction of the house within the time limit specified under Section 54F. - KASI VISWANATHAN RAMNATHAN V/s ITO - [2020] 80 ITR (TRIB) 461 (ITAT-CHENNAI)