Assessee had sold immovable property on 26-5-2011 and purchased a new property on 30-4-2013 and claimed deduction under section 54 of the Act. The Assessing Officer disallowed claim of assessee on ground that assessee had failed to purchase house property before due date of filing of return as per section 139(1) of the Act.CIT(A) affirmed the order of the Assessing Officer. On appeal the Tribunal held that assessee had purchased new property well before deadline given in section 139(4) i.e. 30-4-2013 and therefore, disallowance of exemption under section 54 should be vacated. (AY. 2012-13)
Dr. Dharmista Mehta. v. ITO (2023) 198 ITD 106 (Mum) (Trib.)
S. 54 : Capital gains-Profit on sale of property used for residence-Purchase or construction-Exemption should be allowed if amount is invested on or before due date of filing of return under section 139(4).[S.45,54(2), 139(1),139(4)]