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TMI Blog2017 (6) TMI 439X X X X Extracts X X X X X X X X Extracts X X X X ..... on 2.8.2011 for a sum of Rs. 1.60 crores. The assessee purchased another residential house property on 26.7.2012 for a sum of Rs. 2.75 crores. The assessee claimed exemption u/s. 54 of the Act on the value of new house property against the capital gain computed on sale of old house. The Assessing Officer noticed that the assessee had entered into an agreement to purchase a new house on 26.7.2012 and paid the consideration by way of several cheques. Some of the cheques issued by him have been cleared after 2.8.2012. The Assessing Officer noticed that two cheques aggregating to Rs. 75.00 lakhs have been cleared prior to 2.8.2012. The Assessing Officer took the view that the consideration for the new house should have been paid by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansfer. Admittedly in the instant case the assessee has purchased a new residential house and paid the consideration within two years from the date of transfer. Section 54(2) states that the amount which has not been utilised for purchasing a new house before the due date of furnishing of return of income u/s. 139 of the Act shall be deposited by him before furnishing such return in an account in any such bank or institution as may be specified in and shall be utilised in accordance with scheme so framed in this regard. 6. The learned Departmental Representative submitted that the provisions of sec.54(2) prescribe for depositing the amount into Capital gain account scheme before the date of furnishing return of income. He submitted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce cheques have been issued, assessee's liability gets fulfilled and the same constitute utilization of sale proceeds of the old house. We find merit in the submissions of the assessee. There is not dispute that the assessee has issued cheques to the seller of house property on 26.7.2012, which is prior to the date of furnishing of return of income of the instant year. Accordingly, we are of the view that there is no requirement to comply with the provisions of section 54(2) of the Act in the facts and circumstances of the case. 7. In view of the foregoing, we are of the view that there is no infirmity in the decision taken by the learned CIT(A) and accordingly we uphold the same. 8. In the result, appeal filed by the Revenue is dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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