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TMI Blog2004 (6) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... artment that the assessee wanted to utilise the amount for other purpose than to purchase a house within two years to the extent it has been utilised. As a result, we delete the addition of Rs. 4,01,000 out of Rs. 5 lakhs as per rules and sustain the remaining amount. Thus this ground of appeal is partly allowed. Unexplained deposit - The assessee had made total withdrawal of Rs. 3,14,000 in SBBJ, Jodhpur from January, 1995 to March, 1995 against which he made a total deposit of Rs. 3 lakhs in Vijaya Bank, Jaipur, which included single deposit on 31st March, 1995. Thus the learned CIT(A) was right in holding that the deposits made by assessee in Vijaya Bank, Jaipur stand well explained from the withdrawals made from SBBJ Bank, Jodhpur and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase a residential house situated at Vivek Vihar, Jaipur, and paid earnest money of Rs. 2 lakhs to Shri P.K. Singhvi. This agreement did not materialise because the flat was occupied by a tenant who did not vacate it. Eventually, the agreement was cancelled and earnest money was returned back to the assessee on 17th Dec., 1995. After cancellation of the earlier agreement, the assessee again entered into an agreement to purchase another house at Lodha Tower, Jodhpur on 6th Jan., 1996 for a sum of Rs. 4,01,000 and paid an earnest money of Rs. 21,000 on 6th Jan., 1996 and balance price was paid on 30th March, 1996. The assessee s case is that the money received as consideration of sale of plot on 4th Jan., 1995 was further invested in the purch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the proceeds received on transfer of a capital asset in the purchase within a year or construction within three years of a residential house to avoid payment of capital gain tax. This provision was introduced with the sole intention to purchase or construct a house. Proviso 4 to this section was introduced by the Finance Act, 1987, which reads as under: Under the existing provisions of ss. 54, 54B, 54D and 54F, long-term capital gains arising from the transfer of any immovable property used for residence, land used for agriculture and other capital assets are exempt from income-tax, if such gains are reinvested in new assets within the time allowed for the purpose. The original assessment needs rectification whenever the taxpayer fails ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (SC) 243 : (1992) 196 ITR 149 (SC) wherein it was held by the Hon ble Supreme Court that it is a settled law that the expressions used in the taxing statutes would ordinarily be understood in the sense in which it is harmonious with the object of the statute to effectuate the legislative intention. 3. M.A.C. Khaleeli vs. Dy. CIT (1993) 47 TTJ (Mad) 639 : (1994) 48 ITD 191 (Mad). The facts were that the assessee s claim for exemption under s. 54F was denied in respect of capital gains as surplus was not deposited under s. 54F(4) in a specified bank account but deposited in a housing division of assessee s business to be utilised for construction of residential accommodation. The Madras Bench of the Tribunal, while answering the question in p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances of the case and the decisions relied by the learned Authorised Representative, we are of the considered opinion that the amount of Rs. 4,01,000 out of Rs. 5 lakhs which were ultimately invested within the stipulated time is to be exempt from tax although the assessee failed to technically deposit the same in the capital gain account. The intention of the Act as well as the intention of the assessee are to be considered in a right perspective. It is not the case of the Department that the assessee wanted to utilise the amount for other purpose than to purchase a house within two years to the extent it has been utilised. As a result, we delete the addition of Rs. 4,01,000 out of Rs. 5 lakhs as per rules and sustain the rema ..... X X X X Extracts X X X X X X X X Extracts X X X X
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