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TMI Blog2023 (4) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... s not deposited the net sale consideration under the Capital Gain Account Scheme however, as stipulated by the time frame U/s. 54F(1) - assessee has utilized the entire net sale consideration for the purpose of buying the residential property. Section 54F is a beneficial provision and should be interpreted liberally and Revenue Authorities have to see the end utilization of the net sale consideration in the way prescribed in section 54F - no hesitation to quash the order of the Ld. Pr. CIT passed U/s. 263 of the Act. Appeal of the assessee is allowed. - I.T.A. No.8/Viz/2023 - - - Dated:- 31-3-2023 - Shri Duvvuru Rl Reddy, Hon ble Judicial Member And Shri S Balakrishnan, Hon ble Accountant Member For the Appellant : Sri MV Prasad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut the assessee has failed to file the details / documentary evidence of the property purchased for claiming the exemption U/s. 54F of the Act. The Ld. Pr. CIT also observed that the Ld. AO issued notice U/s. 142(1) of the Act on 17/03/2021 calling for certain information including the details of the property purchased and sold and details of computation capital gains. Since the assessee did not furnish the relevant details, the Ld. Pr. CIT observed that the assessment was completed accepting the income returned. The Ld. Pr. CIT therefore issued a show cause notice dated 19/10/2022 to the assessee through ITBA. Replying to the show cause notice the assessee filed submissions vide letter dated 2/11/2022. The Ld. Pr. CIT while considering the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee was in a position to satisfy that the amount sought for deduction U/s. 54F of the Act was utilized for purchasing or constructing residential house within the time prescribed U/s. 54F(1) of the Act, the assessee could not be denied the benefit of section 54F of the Act. For this proposition and in support of his argument, the Ld. AR relied on the following case laws: (i) Hon ble Bombay High Court judgment in the case of CIT (Central), Nagpur vs. Murli Agro Products Ltd [2014] 49 taxmann.com 172 (Bombay); (ii) Hon ble Karnataka High Court judgment in the case of CIT, Bangalore vs. K. Ramachandra Rao [2015] 56 taxmann.com 163 (Karnataka); (iii) Hon ble Madras High Court judgment in the case of Venkata Dilip Kumar vs. CIT, C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant case, the assessee has not deposited the net sale consideration under the Capital Gain Account Scheme however, as stipulated by the time frame U/s. 54F(1) of the Act, the assessee has utilized the entire net sale consideration for the purpose of buying the residential property. In our considered opinion, section 54F is a beneficial provision and should be interpreted liberally and the Ld. Revenue Authorities have to see the end utilization of the net sale consideration in the way prescribed in section 54F of the Act. Respectfully following the judicial precedents and the case-laws relied on by the Ld. AR, we have no hesitation to quash the order of the Ld. Pr. CIT passed U/s. 263 of the Act. 6. In the result, appeal of the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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