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TMI Blog2017 (10) TMI 1079X X X X Extracts X X X X X X X X Extracts X X X X ..... d some delay. As we observe that as the assessee had during the course of the hearing of the appeal submitted complete details as regards his entitlement towards claim of exemption u/s 54F, which we find had been reproduced by the CIT(A) in his order dated. 29.03.2013, therefore, the A.O is directed to verify the genuineness and veracity of the claim of the assessee in the backdrop of the said facts and figures provided by the assessee. That in case the facts and figures provided by the assessee are found to be in order, then claim of exemption u/s 54F, as raised by the assessee shall be allowed. Needless to say, the A.O shall during the course of the set aside proceedings afford an opportunity of being heard to the assessee to substantiate his aforesaid claim. The Ground of appeal no. 1 raised by the assessee is allowed for statistical purposes. - I.T.A. No. 6261/Mum/2013 - - - Dated:- 15-9-2017 - SHRI G.S. PANNU, AM AND SHRI RAVISH SOOD, JM For The Appellant : Dr. Danial, A.R For The Respondent : Shri V. Justin, D.R. ORDER PER RAVISH SOOD, JUDICIAL MEMBER: The present appeal filed by the assessee is directed against the order passed by the CIT(A)-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gains was accepted by the CIT(A). The A.O while giving effect to the above directions of the CIT(A) though deleted the additions on account of long term capital gains made in the original assessment order, but however, being of the view that the CIT(A) while disposing of the appeal had directed to allow the claim u/s 54F, as per law, therefore declined to summarily accept the claim of exemption made by the assessee u/s 54F. Thus, the A.O on the basis of the observations of the CIT(A) deliberated upon the entitlement of the assessee towards claim of exemption raised u/s. 54F. The A.O observed that as the assessee had not filed her original return of income for AY: 2003-04 stating that she did not have any taxable income, therefore, on the basis of information gathered by the A.O, her case was reopened u/s. 147 of the Act . It was observed by the A.O that though the notice u/s 148 was issued and served on the assessee on 30.03.2010, therein calling upon her to file the return of income for AY: 2003-04 within 30 days from the above date of service of the notice, however, the same was filed only as on 10.08.2010, i.e beyond the stipulated time period. The A.O observed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duly satisfied all the requisite conditions contemplated in Sec. 54F and was duly eligible for claim of exemption under the said statutory provision, therefore, the lower authorities had erred in not allowing the same. Per contra, the ld. D.R. relied on the orders of the lower authorities. 6. We have heard the authorized representatives for both the parties, perused the orders of the lower authorities and the material available on record. We find that our indulgence is sought for adjudicating as to whether the claim of exemption raised by an assessee u/s 54F in a belated return of income filed in compliance to a notice issued u/s 148 is allowable, or not. We have given a thoughtful consideration to the issue which had been raised before us, and are of the considered view that before adjudicating the same it would be relevant to refer to the aforesaid statutory provision, viz. Section 54F, which reads as under:- Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house. 54F. (1) [Subject to the provisions of sub-section (4), where, in the case of an assessee being an individual or a Hindu undivided family], the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , other than the new asset, the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of such new asset as provided in clause (a), or as the case may be, clause (b), of sub-section (1), shall be deemed to be income chargeable under the head Capital gains relating to long term capital assets of the previous year in which such residential house is purchased or constructed. (3) Where the new asset is transferred within a period of three years from the date of its purchase or, as the case may be, its construction, the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of such new asset as provided in clause (a) or, as the case may be, clause (b), of sub-section (1) shall be deemed to be income chargeable under the head Capital gains relating to long-term capital assets of the previous year in which such new asset is transferred.] [(4) The amount of the net consideration which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having been filed beyond the stipulated time period thus involved a delay. The assessee in her aforesaid return of income had raised a claim for exemption u/s 54F of ₹ 20,00,000/-. We find that the A.O while giving effect to the order passed by the CIT(A) deliberated on the entitlement of the assessee towards claim of exemption u/s 54F and concluded that as the assessee had failed to file the return of income within the stipulated time period of 30 days from the date of service notice u/s 148, therefore, the same was not a valid return of income. We find that the A.O on the basis of his aforesaid observations thus being of the view that the claim for exemption u/s 54F raised by the assessee on the basis of the invalid return of income could not be allowed, thus, declined to allow the same. 8. We shall first advert to the observation of the A.O that as the return of income filed by the assessee pursuant to notice issued u/s 148 was filed beyond the specified time period of 30 days from the date of service of notice, therefore, the same would be rendered as invalid, and resultantly the claim of exemption raised by the assessee u/s 54F in the said non est return of inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income was filed by the assessee. 9. We now in the backdrop of our aforesaid observations that the return of income filed by the assessee after the expiry of the time period specified in the notice u/s 148 continues to be a return of income filed u/s 148, though involving some delay, would now deliberate upon the validity of the claim of the assessee raised u/s 54F. We have perused the statutory provision contemplated u/s 54F and are of the considered view that the same does not cast any statutory obligation on the part of assessee to file his return of income within the stipulated time period contemplated u/s 139 or 148 of the Act , as a precondition for entitling him to claim exemption under the said statutory provision. We are of the considered view that the reference to the term due date for furnishing of return of income u/s. 139 as contemplated in section 54F(4) is in context of the time limit within which the amount which had not been appropriated by the assessee towards making of investment in the purchase and/or construction of the new residential house is permitted to be deposited in the Capital Gains Account Scheme, 1988 , which thereafter is to be withdra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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