9911796707
TMI Blog2024 (7) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... vided u/s 139(4) of the Act in case of purchase of new agricultural land. Thus, when an assessee furnishes return subsequent to due date of filing return u/s 139(1) but within the extended time limit u/s 139(4), the benefit of investment made up to the date of furnishing of return of income prior to filing return u/s 139(4) cannot be denied. In the instant case, assessee has paid to the seller, Sri Laxmanbhai Hamirbhai Rabari on 29.03.2017 and filed the return of income on 29.03.2017. Accordingly, we hold that the capital gains utilized towards purchase of new asset before furnishing of return of income u/s 139(4) will be deemed to be sufficient compliance of Section 54B(2) of the Act. Ground raised by the assessee is allowed. - Shri Pawa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n short, LTCG ) on sale of agricultural lands. In computation of income, assessee has shown Rs. 80,112 and Rs. 96,69,154 towards LTCG after claiming exemption of Rs. 23,55,566/- u/s 54B and Rs. 54,75,000/- u/s 54F of the Act. It was found that assessee had purchased agriculture land situated at Village Kosad, on 29.04.2017, which is beyond the time limit allowed as per the provisions of Section 54B of the Act. According to AO, assessee has neither utilized the sale consideration for purchase of a new agricultural land before the due date of filing return of income u/s 139(1) of the Act nor deposited the amount in Capital Gains Account Scheme. The AO issued show-cause as to why the deduction claimed by it should not be added to the income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o agricultural land at Block No.1080, RS No.582/4, Kosad, Adajan, Dist. Surat which was purchased on 29.04.2017 for which the payment was made on 29.03.2017. The Ld.AR of the assessee has given copy of bank statement of the appellant maintained with the Vharachha Co-Op. Bank Ltd., Surat, wherein RTGS of Rs. 14,91,361/- has been made to Shri Laxmanbhai. The Ld.AR of the assessee submitted that the expression used in Section 54B(2) of the Act for time limit for purchase of new asset is before the date of furnishing of ROI u/s 139 of the Act. It does not mention 139(1) of the Act. Provisions of Section 139 includes sub-section (4) of Section 139 of the Act. In the present case, the AY involved is 2016-17 and time available u/s 139(4) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g an individual or his parent, or a Hindu undivided family] for agricultural purposes [(hereinafter referred to as the original asset)], and the assessee has within a period of two years after that date, purchased any other land for being used for agricultural purposes, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say,- (i) (ii) [(2) The amount of the capital gain which is not utilised by the assessee for the purchase 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 de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is required to deposit the capital gain in specified bank account i.e., Capital Gains Account Scheme, 1988 before the due date of filing of return of income u/s 139(1) of the Act. Thus, a distinction has been made in the Act between the two situations; (i) where purchase of new asset is undertaken and (ii) where the assessee opts to deposit the unutilized amount in the specified bank account, Capital Gains Account Scheme, 1988. In the case under consideration, the assessee has not deposited the money in the Capital Gains Account Scheme, 1988. Therefore, the claim of the assessee is required to be examined in the light of the first limb of Section 54B(2) of the Act i.e., whether the capital gain was utilized for the purchase of new ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
