Assessee sold an immovable property and deposited capital gains of Rs. 1.15 crore in Capital Gain Account Scheme, 1988 and claimed exemption under S. 54F of the Act . Assessee purchased a premises for price of Rs. 21.32 lakhs before expiry of three years from date of transfer of original capital assets . Notice was issued with a view to bring the unutilised capital gains tax after the expiry of three years from the date of transfer of the original capital asset was proposed to be subjected to tax u/s 45 of the Act. On writ the single judge held that the appellant is entitle to withdraw the amount deposited in the capital gains Account subject to deduction of tax applicable. High Court affirmed the order of the single judge .( WP No. 3031 of 2019 dt 9 -10-2019) P.N. Shetty. v ITO ( 2019) 181 DTR 97/ 310 CTR 359 / 266 Taxman 15 (Karn) (HC) (AY. 2016-17)
P.N. Shetty. v ITO (2020) 268 Taxman 226/ 186 DTR 165 / 314 CTR 892 (Karn) (HC)
S.54F : Capital gains- Investment in a residential house -A part of amount deposited in Capital Gains Account Scheme was utilized for construction or purchase of a new asset within specified time of three years- Remaining unutilized amount is chargeable to tax in previous year in which period of three years expired- Entitle to withdraw the amount deposited in the capital gains Account subject to deduction of tax applicable .[ S.45, 54F(4) , Art .226 ]