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TMI Blog2018 (8) TMI 1244X X X X Extracts X X X X X X X X Extracts X X X X ..... be denied on such beneficial construction. On the basis of legal principles set out above, the assessee would be required to demonstrate before the AO that the investment in the new asset has actually happened before furnishing of return of income by the assessee under s.139(4) of the Act on 24.02.2014. The AO shall grant relief to the assessee under s.54B of the Act in accordance with law, where it is found that the investment has been carried out in the new asset as contemplated in Section 54B before the date of furnishing belated return of income under s.139(4) of the Act. - Matter remanded back - Decided in favor of assessee ex parte for statistical purposes. - I.T.A. Nos. 109 And 110/Ahd/2017 - - - Dated:- 4-7-2018 - SHRI PRADI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f agricultural land. Similarly, another agricultural land was purchased for ₹ 5,18,125/- (share of the assessee) after due date of filing the return of income under s.139(1) of the Act. The AO thus took a view that in terms of provisions of Section 54B(2), the assessee was required to deposit the capital gains in the prescribed bank account before the due date of filing return of income under s.139(1) of the Act. The assessee however has failed to deposit the capital gain in the bank account as per the requirements of Section 54B(2) of the Act. The AO therefore disallowed the claim of deduction under s.54B (with reference to capital gains arising on sale of agricultural land) in respect of both (i) agricultural lands purchased before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the amount of capital gain in the specified bank account within the due date of filing of return of income under s.139(1) of the Act i.e. 31st July, 2012. The learned DR accordingly contended that the learned CIT(A) has rightly declined to interfere with the action of the AO. 10. We have carefully considered the submissions made on behalf of the Revenue and also perused the assessment order as well as the first appellate order of the CIT(A). The assessee in the present appeal has controverted the denial of deduction claimed under s.54B towards capital gain arising sale of agricultural land. It is the case of the assessee that it has purchased new asset (agricultural land) on 06.02.2013 which falls within the extended due date for filin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee opts to deposit the unutilized amount in the specified bank account. The assessee, in the instant case, does not claim to have deposited the money in the specified bank accounts under capital gain claim at all. Therefore, the claim of the assessee is required to be weighed on the second limb of Section 54(2) of the Act i.e. whether the capital gain has been utilized for the purchase of new asset before the date of furnishing return of income under s.139 of the Act. As noted, the legislature in its own wisdom has used the expression Section 139 for purchase etc. of new asset while on the other hand time limit under s.139(1) has been specified for deposit in capital gain account scheme. When viewed equitably and liberally, the disti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO that the investment in the new asset has actually happened before furnishing of return of income by the assessee under s.139(4) of the Act on 24.02.2014. The AO shall grant relief to the assessee under s.54B of the Act in accordance with law, where it is found that the investment has been carried out in the new asset as contemplated in Section 54B before the date of furnishing belated return of income under s.139(4) of the Act. Accordingly, the issue is set aside to the file of the AO for the purposes of verification of factual aspects after giving proper opportunity to the assessee. 13. In the result, appeal of the assessee in ITA No. 109/Ahd/2017 is allowed ex parte for statistical purposes. ITA No.110/Ahd/2017 14. The fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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