2013 (7) TMI 1016 - AT - Income Tax

Time limit for claiming exemption u/()s 54 - Due date of filing of return u/s 139(1) - Held that the assessee can file return before the expiry of one year from the end of the relevant assessment year - due date for furnishing the return of income u/s 139(1) is subject to the extended period provided u/s 139(4) - claim u/s 54 is allowed - Decided in favor of assessee

Summary

Issues:
Disallowance of part claim under section 54.

Analysis:
1. The appellant sold a residential flat and reinvested the sale proceeds in another property. The Assessing Officer disallowed part of the claim under section 54 as the appellant did not appropriate the entire amount before the due date of filing the return.
2. The appellant argued that the entire sale proceeds were invested in the new property before the due date of filing the return. The CIT(Appeals) upheld the AO's decision, stating that the balance sum was not appropriated before the due date for filing the return under section 139(1).
3. The appellant cited a High Court decision in support of their claim, emphasizing that the due date for filing the return under section 139(1) should be considered along with the extended period provided under section 139(4).
4. The Tribunal analyzed the facts and legal provisions, including the due date for filing the return and the extended period under section 139(4). Relying on the High Court decision, the Tribunal held that the balance claim should be allowed under section 54 as the entire capital gain was utilized before the extended due date of filing the return.

This detailed analysis of the judgment highlights the dispute over the disallowance of part claim under section 54, the arguments presented by the appellant, the decisions of the Assessing Officer and CIT(Appeals), and the Tribunal's final ruling based on legal provisions and precedent.