9911796707
TMI Blog2014 (11) TMI 1190X X X X Extracts X X X X X X X X Extracts X X X X ..... transfer of the original asset expires. Therefore, assessing the said amount for the assessment year 2005-06 when the property is sold on 28-04-2005 is erroneous. Though the assessee purchased a site on 26-09-2005, he could not put up construction because of business exigencies and thus sold the property on 6-10-2006. Immediately thereafter he offered the said amount for tax in the assessment year 2007-08. The authorities erred is assessing the income of the assessee for the assessment year 2005-06 in respect of the capital gain is contrary to law and therefore, it requires to be set aside. - Decided in favour of the assessee. - IT Appeal No. 223 of 2009 - - - Dated:- 17-11-2014 - N.Kumar And B. Manohar, JJ. A. Shankar and M. Lava, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned. Aggrieved by the said order, the assessee preferred an appeal to the Tribunal. The Tribunal dismissed the appeal. Being aggrieved by the said order, the present appeal is filed. 3. The following substantial questions of law arise for our consideration in this appeal. (1) Whether the Tribunal failed to appreciate that in accordance with the provisions of Section 54F (4) the amount deposited in the capital deposited in the capital gains account is deemed to be the cost of the new asset and consequently the appellant was entitled to exemption under Section 54F(1) of the Act for the assessment year 2005 - 06 ? (2) Whether the Tribunal failed to appreciate that in view of the proviso to Section 54F (4) the liability to tax w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he property was sold. Therefore, the assessee has to utilize the said amount for purchasing the residential house within two years and if he is constructing a residential house within three years. In the event of the purchase or construction is completed within a year or two, the question is, is he liable to offer the unutilized capital gain immediately thereafter in the said current financial year? The answer is no because the proviso to Section 54(2) expressly provides that, if the amount deposited under sub-section (2) of Section 54 of the Act is not utilized wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then the amount not so utilized shall be charged under Section 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the property is sold on 28-04-2005 is erroneous. In the facts and circumstances of the case, though the assessee purchased a site on 26-09-2005, he could not put up construction because of business exigencies and thus sold the property on 6-10-2006. Immediately thereafter he offered the said amount for tax in the assessment year 2007-08. Therefore, the authorities erred is assessing the income of the assessee for the assessment year 2005-06 in respect of the capital gain is contrary to law and therefore, it requires to be set aside. The substantial questions of law are answered in favour of the assessee and against the Revenue. Accordingly, we pass the following: ORDER The appeal is allowed. The impugned order passed by the authoriti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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