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TMI Blog2008 (10) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... ale deed on 15th Dec., 1988 by paying a balance of Rs. 5,00,000. The assessee had to file returns by 30th July, 1988. The AO issued notice to the assessee under s. 148 of the IT Act. The assessee on 27th Feb., 2000 filed the returns declaring the income as 'nil' for tax purpose. It is the contention of the assessee that in the assessment year of sale, the assessee entered into an agreement for purchase and paid an advance of Rs. 3,50,000. The balance was paid and registered sale deed is taken in the next year. The AO held that the unutilised sale price of Rs. 5,00,000 is not invested as required under s. 54 (2) of the IT Act. Therefore, the assessee is not entitled to exemption and that the assessee is liable to pay capital gain tax of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in is greater than the cost of the residential house so purchased or constructed (hereafter in this section referred to as the new asset), the difference between the amount of the capital gain and the cost of new asset shall be charged under s. 45 as the income of the previous year, and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase or construction, as the case may be, the cost shall be nil, or (ii) if the amount of capital gain is equal to or less than the cost of the new asset, the capital gain shall not be charged under s. 45; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged under s. 45 as the income of the previous year in which the period of three years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid. 139(4): Any person who has not furnished a return within the time allowed to him under sub-s. (1), or within the time allowed under a notice issued under sub-s. (1) of s. 142, may furnish the return for any previous year at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier: Provided that where the return relates to a previous year relevant to the assessment year commencing on the 1st day of Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntire capital gains by purchase of a house property within the stipulated period of s. 54(2) i.e., before the extended due date for return under s. 139. The assessee technically may have defaulted in not filing the return under s. 139(4). But, however, utilised the capital gains for purchase of property before the extended due date under s. 139(4). The contention of the Revenue that the deposit in the scheme should have been made before the initial due date and not the extended due date is an untenable contention. The Gauhati High Court in CIT vs. Rajesh Kumar Jalan (2006) 206 CTR (Gau) 361: (2006) 286 ITR 274 (Gau) has taken a similar view that the time-limit for deposit under the scheme or utilisation can be made before the due date for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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