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TMI Blog2012 (9) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A) the plea of belated return was raised by the Revenue. Even otherwise, the delay in filing of the return has no bearing on exemption to which the assessee is entitled under the provisions of the Income Tax Act - It is an admitted fact that the entire amount of capital gains has been invested by the assessee in the construction of new residential house within the period prescribed under the provisions of section 54F(1) - against Revenue. - ITA No.1176/Mds/2010, ITA No.1201/Mds/2010 - - - Dated:- 22-8-2012 - Abraham P George, Vikas Awasthy, JJ. For Appellant: Mr Vikramaditya, JCIT Dr S Moharana, CIT-DR For Respondent: Mr T N Seetharaman, Adv. ORDER Per: Bench: The present set of appeals i.e. ITA No.1176/Mds/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee invested Rs. 14,50,000/- on the construction of residential house during the year ended on 31.3.2007. Thereafter the assessee invested another sum of Rs.20,05,000/- in construction of the building on the land in question during the period from 1.4.2007 to 31.10.2007. Thus, the total amount spent by the assessee in the construction of the building was Rs.34,54,995/-. While filing the return relevant to the assessment year 2007-08 the assessee claimed exemption under section 54F of the Act. Thus, as per the computation of the assessee the capital gains were Nil. The Assessing Officer did not accept the computation of the assessee. The Assessing Officer obtained guideline value in respect of the property sold by the assessee from the Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... depositing the unutilized portion of capital gains in a specified capital gains account. Further, the assessee has utilized the remaining portion of capital gains of Rs. 20,04,995/- during the next financial year i.e. 01.04.2007 to 31.03.2008. 5. The learned CIT(A) has failed to note the assessee s non-compliance in filing his return of income far beyond the time limit on which the CIT(A) has directed the Assessing Officer to allow full exemption u/s.54F of the I.T. Act which is against the law. 6. The learned CIT(A) failed to note that the assessee has not incurred the entire capital gains within the previous year relevant to the assessment year under consideration and also not complied with the provisions of section 54F(4) of I.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable thereon is not binding on him as no notice was issued to him in compliance with the provisions of section 47A(2) of the Indian Stamp Act, 1899 read with Rule 4 to Tamil Nadu Stamp Rules, 1968 and the value of Rs.53,54,400/- has been determined without affording him any opportunity of hearing and without granting opportunity to file his objections. In order to support his contentions, the counsel pointed out to the proceedings before the District Revenue Officer, Coimbatore wherein a communication has been addressed to the vendee of the property sold by the assessee. The assessee submitted that since the provisions of the Stamp Act have not been complied with, therefore, the value of land taken by the CIT(A) should not be taken into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee had not complied with the provisions of the Act in filing of the return of income within the time limit, rather the CIT(A) directed the Assessing Officer to allow full exemption under section 54F of the Act which is against the law. The learned DRs further contended that as per the provisions of section 54F(4), the assessee was duty bound to debit excess amount into Capital Gain Account Scheme, 1988 and the deposit receipts should be attached with the return of income. Since, the assessee has not complied with the utilization of funds, as per the provisions of section 54F of the Act, the assessee is not eligible for full exemption of capital gains. 8. We have heard the submissions made by the respective parties and have also gone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appropriate forum. The assessee in the income-tax proceedings cannot take the plea that since he was not a party in other proceedings, the same is not binding on him. In the present case, the value of the land adopted by the District Revenue Officer for the purpose of fixation of stamp duty, is binding on the assessee. There is no force in the appeal of the assessee. 9. The Revenue has assailed the order of the CIT(A) also on the ground that the assessee is not entitled for the benefit under the provisions of section 54F as the return was filed by the assessee far beyond the time limit. We do not agree with the submissions made by the D.R. The assessment was completed under the provisions of section 143(3). At no point of time before the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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