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TMI Blog2018 (8) TMI 1809X X X X Extracts X X X X X X X X Extracts X X X X ..... osited the same in Long Term Capital Gain Account with PNB on 28/09/2010 i.e. before due date of filing of return of income for impugned AY. The material on record reveal that the assessee s accounts were subjected to Audit and the due date of filing of return of income in his case, as extended by CBDT vide Order No.402/92/2006-MC (42 of 2010) dated 28/09/2010 was 15/10/2010. In such a case, the amount so deposited by him, in terms of provisions of Section 54(2), is deemed to be the cost of new asset and accordingly the assessee was entitled for deduction of the same during impugned AY. Proceeding further, we find that the case of the revenue is that the assessee did not utilize the amount so deposited for making investment in new House ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 61. 3. The learned Commissioner of Income Tax (Appeals) 31 ought to have directed the learned income tax officer to issue summons under section 133(6) of the income tax Act 1961 in the interest of principle of natural justice. 4. The learned Commissioner of income Tax (Appeals) 31 ought to have considered date of investment in new flat was within the stipulated time limit for construction of house i.e. three years. The assessment for impugned AY was framed by Ld. Income Tax Officers-20(3)(1) u/s 143(3) on 25/03/2013 wherein the income has been determined at ₹ 41.23 Lacs as against returned income of ₹ 5.62 Lacs e-filed by the assessee on 04/10/2010. In the quantum assessment, the assessee has been d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther reason to disallow the deduction was the fact that the assessee failed to produce any documentary evidences to demonstrate investment in the new property. Finally, the aforesaid deduction was denied to the assessee and Long Term Capital Gain was computed as ₹ 35.60 Lacs which was assessed in the hands of the assessee. 3. Aggrieved, the assessee contested the same without any success before Ld. CIT(A) vide impugned order dated 15/09/2014 wherein the stand of Ld. AO was confirmed. Aggrieved the assessee is in further appeal before us. 4. The Ld. Authorized Representative for Assessee [AR], Shri Haresh P.Shah, by drawing our attention to the documents placed in the paperbook contested the stand taken by lower aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e during impugned AY. For the sake of clarity, the relevant statutory provisions as contained in Section 54 are reproduced below:- Profit on sale of property used for residence. 54.(1) Subject to the provisions of sub-section (2), where, in the case of an assessee being an individual or a Hindu undivided family], the capital gain arises from the transfer of a long-term capital asset, being buildings or lands appurtenant thereto, and being a residential house, the income of which is chargeable under the head Income from house property (hereafter in this section referred to as the original asset), and the assessee has within a period of one year before or two years after the date on which the transfer took place purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich is not utilized by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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