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TMI Blog2020 (1) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... new house property. The only condition required to be fulfilled is that assessee should purchase a new house property within a period of one year before or after the date on which the transfer of his property took place or he should have constructed a house property within a period of two years after the sale of original asset. There is no provisions under Section 54 of the Act stipulating that assessee should utilize the amount which he obtained by way of sale for meeting the cost of new house. It is settled principle of interpretation of statute that Court do not have power to go beyond the terms of statute where the benefits are granted subject to fulfillment of certain conditions. The Courts cannot impose some other conditions in ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being contributed by the Appellant s husband towards reinvestment in new house property. 2.1 The Commissioner of Income tax (Appeals) erred in holding that the legislative intention is to provide deduction under Section 54 only in respect of reinvestment in a new house property out of the long term capital gains, and this cannot include the amount contributed by the spouse, though it may include loans borrowed from bank. 2.3 The Commissioner of Income tax (Appeals) has accepted that the Assessee has fulfilled all the conditions required under the Section to avaiL the deduction, that is, (i) The new property purchased is residential house property in her Name. (ii) T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The brief facts of the case are as under: The appellant is an individual. The return of income for the AY 2016-17 was filed on 30.07.2016 disclosing total income of ₹ 15,08,810/-. Against the said return of income, the assessment was completed by the Assistant Commissioner of Income Tax, Non Corp. Circle 18(1) Chennai vide order dated 22.12.2018 passed u/s. 143(3) of the Income Tax Act, 1961 (for short the Act ) at total income of ₹ 1,07,41,750/- by restricting capital gains u/s.54 of the Act to ₹ 79,13,000/- as against the claim of ₹ 1,74,45,939/- on the ground that new house was brought by the assessee not out of sale proceeds of original asset but out of funds provided by spouse. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty Ltd, Flat No.803, Sapodila, Vadagaon Sheri, Pune for a consideration of ₹ 2,90,00,000/-. The capital gains were computed at ₹ 1.71 Crores after reducing cost of indexation of ₹ 1.19 Crores. Assessee bought new residential property for ₹ 1,88,00,000/- at No.A-1405, Radiance Mandarin, No.1, Pallavaram Thoraipakkam Radial Road, Chennai-97 and claimed exemption of capital gains u/s.54 of the Act as assessee brought new residential property for consideration of ₹ 1.88 Crores. During the course of assessment proceedings, the Assessing Officer found that sale consideration received was invested in mutual funds and bonds. He further found that new residential house was bought out of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act stipulating that assessee should utilize the amount which he obtained by way of sale for meeting the cost of new house. It is settled principle of interpretation of statute that Court do not have power to go beyond the terms of statute where the benefits are granted subject to fulfillment of certain conditions. The Courts cannot impose some other conditions in order to give benefit conferred by the statute. 9. We also place reliance on the decision of Hon ble Kerala High Court in the case of K.C. Gopalan (supra) wherein it was held as follows:- The assessee has to construct or purchase a house prperty for his own residence in order to get the benefit of s. 54. The wording of the section itself wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven to it by the CIT(A) and the Tribunal . The Hon ble Punjab and Haryana High Court in the case of Kapil Kumar Agarwal Ors (supra) referring to the judgment of Hon ble Kerala High Court in the case of K.C. Gopolan(supra) held as follows:- 14. The assessee has to purchase or construct a house property during the period specified under section 54F of the Act in order to get benefit there under. Section 54F of the Act nowhere envisages that the sale consideration obtained by the assessee from the original capital asset is mandatorily required to be utilised for the purchase or construction of a house property. No provision has been made by the statute that in order to avail of the benefit of section 54 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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