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TMI Blog2016 (2) TMI 1193X X X X Extracts X X X X X X X X Extracts X X X X ..... -Section (1) of Section 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. Such being the situation, it was the case of the assessee that he could fulfill the requirement u/s 54 for exemption of the capital gain from being charged to income-tax on the sale of property used for residence up to 30-3-1998, inasmuch as the return of income tax for the assessment year 1996-97, could be furnished before the expiry of one year form the end of the relevant assessment year or before the completion of the assessment, whichever is earlier, under sub-Section (4) of Section 139. Also see COMMISSIONER OF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The sale consideration was worked out in the hands of Smt. Hamida Bee and her two sons, which worked out to ₹ 16,70,367/-. However, the assessee worked out their share at ₹ 16,66,080/- that is on little lower side. The correct sale consideration in hand worked out at ₹ 16,70,367/-. Therefore, long term capital gain was worked out at ₹ 16,70,367/-. The show cause notice was given and in reply to show cause notice, the assessee submitted that she has constructed house within two years from the date of transfer of original asset. Hence, the deduction u/s 54F should be allowed, which was not allowed. 3. The matter carried to the ld. CIT(A) and the ld. CIT(A) has dismissed the appeal. 4. During the course of hearing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, before the date of filing of return u/s 139, the exemption is available. This view has been taken in various judgments as under :- Rajesh Kr. Jalan ,286 ITR 274 ( Gau) CIT vs. Jagriti Agrawal, 339 ITR 610 ( P& H) Kishore H. Galaiya, 24 Taxmann.com 11 (Mum) CIT vs. Jagtar Singh Chawla, 33 Taxmann.com 38 (P & H ) The assessee further submits that the amount has been utilised in the construction of new house within 3 years of the date of transfer. The proof of investment is as under :- 1. Approval from Municipal Authority is dated 17.11. 2006. 2. Permission from Municipal Corporation alongwith property tax receipt is dated 2.12.2007. 3. Details of various expenses incurred on the construction. Copy of various bills for const ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o construct the new house and if it is not finished within one year then the amount of capital gains must be deposited in capital gain deposit account in assessment year 2008-09. Similarly, the assessee has also not filed the return and assessee has filed the return for assessment year 2008- 09 in response to notice u/s 148 and the return was filed on 12.6.2012. Though the assessee has not filed the return of income in time and not deposited the amount but the assessee has used the capital gain for construction of the new housel. In support of the claim of the assessee, the assessee has filed approval from Municipal Authority, and permission of the Municipal Corporation and details of the expenditure for construction of the house and comple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e claim by observing as under :- " From a plain reading of sub-Section (2) of Section 54, it is clear that only Section 139 is mentioned in Section 54(2) in the context that the unutilized portion of the capital gain on the sale of property used for residence should be deposited before the date of furnishing the return of the income-tax under Section 139. Section 139 cannot mean only Section 139(1) but it means all sub-sections of Section 139. Under sub-Section (4) of Section 139, any person who has not furnished a return within the time allowed to him under sub-Section (1) of Section 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 compl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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