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TMI Blog2016 (9) TMI 1563X X X X Extracts X X X X X X X X Extracts X X X X ..... pse of the assessee, the benefit of section 54 should not be denied. Section 54 of the Act is a beneficial provision and a beneficial interpretation has to be made as far as possible for giving benefit to the assessee. The assessee had proceeded to comply with the provisions of section 54 of the Act but has only made a small technical breach which we are of the considered view should not disentitle the assessee for the benefit of section 54 of the Act. Therefore, we hereby direct the AO to grant the benefit of section 54 of the Act to the assessee and accordingly delete the addition made by him which was further sustained by the learned Commissioner of Income Tax (Appeals). - Decided in favour of assessee. - I.T.A.No.1167/Mds/2016 - - - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred in confirming the addition made by the learned Assessing Officer towards long term capital gains by withdrawing the exemption under section 54 of the Act. 4. Brief facts of the case are that the assessee is an individual carrying on the business of petrol bunk in the name of M/s.Sarathy Service Station. The assessee filed his return of income for the assessment year 2009-10 on 30.09.2009 declaring income of ₹ 2,51,184/-. The case was selected for scrutiny and notice under section 143(2) was issued to the assessee. During the course of scrutiny proceedings, it was noticed by the learned Assessing Officer that the assessee had sold a house property at Kodaikanal on 25.04.2008 as reflected in the AIR. The same was not reflected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissed the appeal of the assessee by observing as under:- However, in the instant case assessee is a petrol bunk owner and runs the bank in the name of M/s. Sarathi Service Station who is supposed to be aware that mere technical breach or a lapse will not make assessee eligible for his claim of exemption under section 54. In the instant case, the capital gain was not deposited in the capital gain account scheme of a nationalized bank however, the same was deposited in his regular bank account only. Thus, the assessee has not deposited the capital gain that arose on account of sale of property in any capital gain account scheme of a nationalized bank as specified in section 54(2). For claiming exemption U/s.54(1) 54(2) has to be ful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeds in the capital gain scheme account as prescribed under section 54(2) of the Act. In that decision reliance was also placed in the decision of Hon ble Apex Court in the case of Motilal Padampat Sugarmill Co.Ltd. Vs. State of Uttar Pradesh Ors wherein it was held that thus there is no presumption that every person knows the law. It is often said that everyone is presumed to know the law, but that is not a correct statement there is no such Maxim known to the law. In the given case before us also, it is not disputed that the assessee had not fulfilled the conditions prescribed under section 54 of the Act barring the deposit of the sale proceeds in the capital gain scheme account . Moreover, the facts reveal that the assessee had dep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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