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TMI Blog2020 (12) TMI 597X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;). 3. The facts of the case are that the assessee filed Return of Income for the Assessment Year 2013-14 on 3.3.2014 declaring income at Rs. 3,46,640. In the Return of Income, the assessee claimed deduction Under Section 54F of the Act. The claim of the deduction Under Section 54F was denied by the Assessing Officer on the reason that the assessee has not deposited the net sale consideration in Capital Gain Scheme Account which is a clear violation provisions of Section 54F(4) of the Act. On appeal, the CIT (Appeals) observed that the assessee has not deposited the net sale consideration in Capital Gain Scheme Account during the intermittent period of construction of residential house and he confirmed the order of the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 (Chennai-Trib) 5. On the other hand, the ld. DR submitted that Section 54F(4) of the Act stipulates that for claiming the benefit of Capital Gain tax exemption, the assessee has to invest within a period of one year before or two years after the date of transfer took place purchased or has within a period of three years after the sale date constructed, one residential house in India, the capital gain shall be exempted from the tax. If the assessee has not complied with these requirements and not appropriated the net sale consideration towards purchase of new asset or constructed new residential house than the said net sale consideration to be deposited in prescribed capital gains scheme as notified by the Central Government. According to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se within three years from the date of transfer can he be denied exemption under Section 54F on the ground that he did not deposit the said amount in capital gains account scheme before the due date prescribed under Section 139(1) of the IT Act ? " This was answered by Hon'ble High Court as follows : " As is clear from Sub Section (4) in the event of the assessee not investing the capital gains either in purchasing the residential house or in constructing a residential house within the period stipulated in Section 54F(1), if the assessee wants the benefit of Section 54F, then he should deposit the said capital gains in an account which is duly notified by the Central Government. In other words if he want of claim exemption from payment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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