ARUN KUMAR JAIN, NEW DELHI V. ITO, WARD- 30(4), NEW DELHI

ITA 6836/DEL/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2936 (ITAT-DELHI)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 13-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K JIWANI
• Assessee Lawyers: V RAJ KUMAR
• Keywords: Cost of acquisition
• Section: 143(3); 54; 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES SMC : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.NO.6836/DEL./2017 ASSESSMENT YEAR 2014-2015 SHRI ARUN KUMAR JAIN, E-258, EAST OF KAILASH, NEW DELHI 110 065. PAN AAFPJ9508H VS. THE INCOME TAX OFFICER, WARD 30(4), CIVIL CENTRE, NEW DELHI. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI K. SAMPATH AND SHRI V. RAJ KUMAR, ADVOCATES FOR REVENUE : SHRI V.K. JIWANI, SR.D.R. DATE OF HEARING : 0 7 .03.2018 DATE OF PRONOUNCEMENT : 14 .03.2018 ORDER THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-10, NEW DELHI, DATED 18 .01.2017, FOR THE A.Y. 2014-2015 ON THE FOLLOWING GROUND : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT (APPEALS) HAS ERRED: - IN SUSTAINING THE ADDITIONS/DISALLOWANCE MADE BY TH E ASSESSING OFFICER IN THE IMPUGNED ASSESSMENT ORDER: 2 ITA.NO.6836/DEL./2017 SHRI ARUN KUMAR JAIN, NEW DELHI. (I) RS.12,93,349/- IN CONTRAVENTION OF PROVISIONS O F SECTION 54(2) OF THE INCOME TAX ACT, 1961 WITHOUT APPRECIATING THE FACTS THAT THE AMOUNT OF CAPITAL G AIN HAS DULY BEEN UTILIZED FOR THE PURCHASE OF NEW ASSE T BEFORE THE DUE DATE OF FURNISHING THE RETURN OF INC OME U/S 139 OF THE I T ACT. THE ABOVE ACTIONS BEING ARBITRARY, ILLEGAL AND UNWARRANTED MUST BE QUASHED. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT ASSESSE E FILED RETURN OF INCOME AT RS.1,56,420/- ON 26 TH JULY, 2015. IN THIS CASE, ASSESSEE SOLD HIS FLAT BEARING 172, ABHINAV A PARTMENTS, PLOT NO.B-12, VASUNDHARA ENCLAVE, DELHI, FOR A TOTA L CONSIDERATION OF RS.98,50,000. AS PER THE CONVEYANC E DEED OF THE PROPERTY, IT WAS ALLOTTED TO THE ASSESSEE ON 19 TH DECEMBER, 1998 BY DDA FOR A TOTAL CONSIDERATION OF RS.13,45,0 71. FURTHER, THE ASSESSEE PURCHASED A RESIDENTIAL FLAT B-61, EAS T OF KAILASH, NEW DELHI, DURING THE F.Y. 2014-2015 IN THE JOINT N AME OF ASSESSEE AND SMT. SANGITA JAIN, WIFE OF ASSESSEE, F OR A TOTAL CONSIDERATION OF RS.80 LAKHS FROM M/S. JATINDER CON STRUCTION COMPANY. ALL THE PAYMENTS OF THIS PROPERTY WERE MAD E FROM THE 3 ITA.NO.6836/DEL./2017 SHRI ARUN KUMAR JAIN, NEW DELHI. BANK ACCOUNTS OF ASSESSEE. THE CAPITAL GAIN COMPUTE D BY THE REVENUE ON SALE OF FLAT 172, ABHINAV APARTMENTS, PL OT NO.B-12, VASUNDHARA ENCLAVE, DELHI ON THE BASIS OF DOCUMENTA RY EVIDENCES SUBMITTED BY ASSESSEE SHOWING LONG TERM C APITAL GAIN OF RS.62,93,349/-. FOR THE PURCHASE OF NEW FLAT B-6 1, EAST OF KAILASH, NEW DELHI, ASSESSEE PAID RS.50 LAKHS TO TH E VENDOR TILL THE FILING OF HIS ITR FOR A.Y. 2014-2015 UNDER APPE AL. THE RETURN WAS HOWEVER, FILED ON 26 TH JULY, 2015. THE A.O. NOTED THAT AS PER SECTION 54(2) OF THE I.T. ACT, THE AMOUNT OF CA PITAL GAIN, WHICH IS NOT UTILIZED BY HIM FOR THE PURCHASE OF NE W ASSET BEFORE THE DATE OF FURNISHING THE ITR UNDER SECTION 139, S HALL BE DEPOSITED BY HIM, BEFORE FURNISHING SUCH RETURN IN AN ACCOUNT IN ANY SUCH BANK OR INSTITUTION AS MAY BE SPECIFIED IN THE OFFICIAL GAZETTE, SHALL BE ACCOMPANIED BY PROOF OF SUCH DEPOSIT. IN THIS CASE, ASSESSEE HAS NOT DEPOSITED THE UNUTIL IZED AMOUNT IN CAPITAL GAIN ACCOUNT BEFORE FILING OF ITR OF 201 4-2015 I.E., 26 TH JULY, 2015, SO BENEFIT OF CAPITAL GAIN TO THE TUNE OF UNUTILIZED AMOUNT AND NOT DEPOSITED IN CAPITAL GAIN ACCOUNT WI LL NOT BE GIVEN TO THE ASSESSEE AND IT WILL BE CHARGED TO TAX UNDER SECTION 4 ITA.NO.6836/DEL./2017 SHRI ARUN KUMAR JAIN, NEW DELHI. 45 OF THE I.T. ACT. THE A.O. ACCORDINGLY, MADE ADDI TION OF RS.12,93,349/- UNDER THE HEAD LONG TERM CAPITAL GA INS. 3. THE ASSESSEE CHALLENGED THE ADDITION BEFORE THE LD. CIT(A), IN WHICH, THE ASSESSEE BRIEFLY HIGHLIGHTED THAT DUE DATE OF FILING OF THE RETURN FOR ASSESSMENT YEAR UNDER A PPEAL UNDER SECTION 139(1) WAS 31 ST JULY, 2014. THE ASSESSEE HOWEVER, FILED THE RETURN OF INCOME ON 26 TH JULY, 2015. IT WAS SUBMITTED THAT ASSESSEE HAS PAID RS.75 LAKHS TO THE VENDOR INSTEAD OF RS.50 LAKHS MENTIONED BY THE A.O. IN THE ASSESSMENT ORDER . THE ADDITIONAL AMOUNT OF RS.25 LAKHS WAS PAID VIDE CHEQ UE NO.000002 DATED 30 TH JULY, 2014 DRAWN ON HDFC BANK, EAST OF KAILASH, NEW DELHI. PHOTO COPY OF THE CHEQUE WAS ALSO FILED. IT WAS, THEREFORE, SUBMITTED THAT ASSESSEE DULY UTI LIZED THE CAPITAL GAIN FOR PURCHASE OF NEW ASSET BEFORE THE D UE DATE OF FURNISHING OF THE ITR UNDER SECTION 139 AS PER THE CONDITIONS PROVIDED UNDER SECTION 54(2) OF THE I.T. ACT. IT WA S, THEREFORE, SUBMITTED THAT SINCE ASSESSEE UTILIZED RS.75 LAKHS FOR THE PURPOSE OF PURCHASE OF NEW RESIDENTIAL PROPERTY, TH EREFORE, 5 ITA.NO.6836/DEL./2017 SHRI ARUN KUMAR JAIN, NEW DELHI. ADDITION SHOULD BE DELETED. THE LD. CIT(A), HOWEVER , CONFIRMED THE ADDITION AND DISMISSED THE APPEAL OF ASSESSEE. HIS FINDINGS IN PARAS 3.1 TO 5 OF THE ORDER ARE REPRODUCED AS UN DER : FINDINGS : 3.1 I HAVE CAREFULLY CONSIDERED THE DETAILS SUBMIS SION OF THE LD. AR AND HAVE ALSO GONE THROUGH THE DETAILED ASSESSMENT ORDER PASSED BY THE AO U/S 143(3) OF THE I.T. ACT. DURING THE YEAR UNDER CONSIDERATION THE APPELL ANT SH. ARUN KUMAR JAIN SOLD HIS FLAT BEARING NO. 172, ABHI NAV APARTMENT, PLOT NO.-B-12, VASUNDHARA ENCLAVE, NEW D ELHI, FOR TOTAL CONSIDERATION OF RS.98,50,000/-. AS PER C ONVEYANCE DEED THE SAID PROPERTY WAS ALLOTTED TO THE APPELLAN T ON 19.12.1998 BY THE DDA FOR TOTAL CONSIDERATION OF RS . 13,45,071/-. APPELLANT FURTHER PURCHASED A RESIDENT IAL FLAT B-161, EAST OF KAILASH, NEW DELHI IN THE JOINT NAME OF SH. ARUN KUMAR JAIN AND SMT. SANGITRA JAIN FOR TOTAL CONSIDERATION OF RS.80,00,000/- FROM M/S JATINDER CONSTRUCTION COMPANY. AIL THE PAYMENTS ARE FOUND TO BE PAID THROUGH BANK ACCOUNTS OF THE ASSESSEE. 3.1.1. THE CAPITAL GAIN ON SALE OF ABOVE CAPITAL A SSET IS WORKED-OUT AS UNDER : 6 ITA.NO.6836/DEL./2017 SHRI ARUN KUMAR JAIN, NEW DELHI. COST OF ACQUISITION AFTER INDEXATION (AS CLAIMED BY ASSESSEE) = RS.35,36,651/- COST OF BROKERAGE = -NIL- LONG TERM CAPITAL GAIN = RS.98,50,000 RS.35,56,851/- RS.62,93,349/- (CLAIMED BY ASSESSEE IN COMPUTATION OF INCOME) DURING THE ASSESSMENT PROCEEDING IT WAS NOTICED BY THE AO THAT RS.50,00,000/- WAS STAND PAID TO THE VENDOR TI LL THE FILING OF HIS IIP, FOR A.V.2014-15. HE HAS FILED HI S ITR ON 26.07.2015. AO IN HIS ORDER EXPLAINED THE PROVISION OF SECTION 54(2) OF THE I.T. ACT AND VIS-A-VIS VERIFIE D THE PROOF OF DEPOSIT OF CAPITAL GAIN TO CLAIM EXEMPTION OF CA PITAL GAIN. AO HAS CONCLUDED IN HIS ASSESSMENT ORDER THAT THE REMAINING AMOUNT OF CAPITAL GAIN OF RS.12,93,349/- WAS NOT FOUND TO BE DEPOSITED IN THE CAPITAL GAIN ACCOU NT BEFORE THE FILING OF ITR FOR A.Y.2014-15. THEREFORE, THE U NUTILIZED AMOUNT WAS ADDED TO THE INCOME OF THE ASSESSEE. THE RELEVANT SECTION I.E. SECTION 54(2) OF THE I.T. ACT IS AS UNDER: 7 ITA.NO.6836/DEL./2017 SHRI ARUN KUMAR JAIN, NEW DELHI. SUBJECT TO THE PROVISIONS OF SUB-SECTION (2), WHER E, IN THE CASE OF AN ASSESSEE BEING AN INDIVIDUAL OR A HINDU UNDIVIDED FAMILY, THE AMOUNT OF THE CAPITAL GAIN WH ICH IS NOT APPROPRIATED BY THE ASSESSEE TOWARDS THE PURCHA SE OF THE NEW ASSET MADE WITHIN ONE YEAR BEFORE THE DATE ON WHICH THE TRANSFER OF THE ORIGINAL ASSET TO PLACE, OR WHICH IS NOT UTILIZED BY HIM FOR THE PURCHASE OR CONSTRUCTIO N OF THE NEW ASSET. BEFORE THE DATE OF FURNISHING THE RETURN OF INCOME U/S 139, SHALL BE DEPOSITED BY HIM BEFORE FURNISHING SUCH RETURN [SUCH DEPOSIT BEING MADE IN ANY CASE NOT LATER THAN THE DUE DATE APPLICABLE IN THE CASE OF ASSESSEE FOR FURNISHING OF THE RETURN OF INCOME UND ER SUB- SECTION (1) OF SECTION 139] IN AN ACCOUNT IN ANY SU CH BANK OR INSTITUTION AS MAY BE SPECIFIED IN, AND UTILIZED IN ACCORDANCE WITH, IN SCHEME WHICH THE CENTRAL GOVERN MENT MAY, BY NOTIFICATION IN THE OFFICIAL GAZETTE, FRAME IN THIS BEHALF AND SUCH RETURN SHALL BE ACCOMPANIED BY PROO F OF SUCH DEPOSIT AND FOR THE PURPOSE OF SUB-SECTION (1) THE AMOUNT, IF ANY, ALREADY UTILIZED BY THE ASSESSEE FO R THE 8 ITA.NO.6836/DEL./2017 SHRI ARUN KUMAR JAIN, NEW DELHI. PURCHASE OR CONSTRUCTION OF THE NEW ASSET TOGETHER WITH THE AMOUNT SHOW DEPOSITED SHALL BE DEEMED TO THE COST O F NEW ASSET: PROVIDED THAT IF THE AMOUNT DEPOSITED UNDER THIS SU B- SECTION IS NOT UTILIZED WHOLLY OR PARTLY FOR THE PU RCHASE OR CONSTRUCTION OF THE NEW ASSET WITHIN THE PERIOD SPECIFIED IN SUB-SECTION (1), THEN,- (I) THE AMOUNT NOT SO UTILIZED SHALL BE CHARGED UNDER S UB- SECTION 45 AS THE INCOME OF THE PREVIOUS YEAR IN WH ICH THE PERIOD OF THREE YEARS FROM THE DATE OF THE TRAN SFER OF THE ORIGINAL ASSET EXPIRES, AND (II) THE ASSESSEE SHALL BE ENTITLED TO WITHDRAW SUCH AMOUNT IN ACCORDANCE WITH THE SCHEME AFORESAID. 3.1.2. THUS SEC 54(2) OF THE I.T. ACT, STATES THAT THE AM OUNT WHICH HAS NOT BEEN UTILIZED FOR PURCHASING A NEW HOUSE BEFORE THE DUE DATE OF FURNISHING OF RETURN O F INCOME U/S 139(1) OF THE ACT SHALL BE DEPOSITED BY HIM BEFORE FURNISHING SUCH RETURN IN AN ACCOUNT IN ANY SUCH BANK OR INSTITUTION AS MAY BE SPECIFIED IN AND 9 ITA.NO.6836/DEL./2017 SHRI ARUN KUMAR JAIN, NEW DELHI. SHALL BE UTILIZED IN ACCORDANCE WITH SCHEME SO FRAM ED IN THIS REGARD. IN THE INSTANT CASE, AS PER ABOVE DETAIL DISCUSSION , THE TIME LIMIT OF FILING OF RETURN ARC ITS DUE DATE U/S 139 OR ARE FOUND TO BE AS UNDER: THE TIME LIMIT FOR FILING THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2014-15 AS PRESCRIBED U/S 139(1) OF THE I.T. ACT. 1961 IS . 31.07.2014 WHEREAS THE INCOME TAX RETURN RELATING TO THE ASSESSMENT YEAR 2014-15 WAS FILED ON 26.07.2015 3.1.3. THE DUE DATE FOR FILING OF RETURN U/S 139(1) FOR TH E A.Y.2014-15 IN THE CASE OF ASSESSEE WAS 31.07.2014. HOWEVER, IT IS NOTICED THAT HE HAS FILED HIS RETURN OF INCOME ON 26.07.2015. THEREFORE, APPELLANT WAS REQUIRED TO INVEST ITS CAPITAL GAIN OF RS.62.93,349 /- INTO PURCHASE OF NEW PROPERTY TO CLAIM EXEMPTION FR OM TAX ON CAPITAL GAIN. AS IT IS SEEN THAT THE APPELLA NT HAS PURCHASED A NEW FLAT B-61, EAST OF KAILASH, NEW DEL HI FROM JATINDER CONSTRUCTION COMPANY. HE HAS PAID 10 ITA.NO.6836/DEL./2017 SHRI ARUN KUMAR JAIN, NEW DELHI. RS.50,00,000/- BY TWO CHEQUES ON 03.04.2014 AND 16.04.2014 RESPECTIVELY ARE FOUND TO BE INVESTED BEFORE THE DUE DATE FOR FILING OF RETURN, WHICH IS 31.07.2014 IN THE CASE OF THE ASSESSEE. HOWEVER, TH E ANOTHER PAYMENT OF RS.25,00,000/- WAS FOUND TO BE PAID ONLY ON 01.08.2014, WHEN APPELLANT CAN MAKE PAYMENT OF RS.50 LAKH WELL IN TIME I.E. IN THE MONT H OF APRIL ITSELF, AND IS ALSO AWARE THAT HE WAS TO MAKE PAYMENT OF ENTIRE AMOUNT IN TIME TO GET EXEMPTION O F HIS CAPITAL GAIN, WHY HE HAS DELIBERATELY WAITED TI LL THE FAG END OF JULY 2014. IT APPEARS THAT INITIALLY HE WAS TO DEPOSIT ONLY RS.50 LAKH THE REMAINING AMOUNT OF RS.12,93,349/- COULD BE A OUT COME OF AFTER THOUGHT . THAT IS HOW HE HAS DEPOSITED THIS AMOUNT AFTER THE GAP OF THREE MONTHS OF ITS INITIAL AMOUNT, DESPITE THER E WAS ENOUGH BALANCE IN THE BANK ACCOUNT OF THE ASSESSEE. 'NET SALE CONSIDERATION SHOULD HAVE DEPOSITED/ INVESTED, IN THE CAPITAL GAIN ACCOUNT SCHEME OR SHO ULD HAVE INVESTED IN PURCHASE/CONSTRUCTION OF HOUSE 11 ITA.NO.6836/DEL./2017 SHRI ARUN KUMAR JAIN, NEW DELHI. BEFORE THE DUE DATE OF FILING OF RETURN U/S 139(1) OF THE I.T. ACT. CIT VS V R DESAI (KER) 197 TAXMAN 52. AS PER THE FACT OF THE CASE THE AMOUNT WHICH IS PAID ON 01.08.2014 IS BEYOND THE DATE OF DUE DATE HENCE THE CONDITIONS PRESCRIBED IN SECTION 54(2) HAVE NOT BEE N FULL FILLED BY THE ASSESSEE. THEREFORE, AO WAS JUST IFIED IN REJECTING THE CLAIM MADE U/S 54 OF THE ACT TO TH E EXTENT OF RS.12,93,349/-. 5. AS A RESULT, THE APPEAL IS DISMISSED. 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. LEARNE D COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW AND FILED THE COPY OF THE RECEIPT OF PAYMENT OF RS.25 LAKHS VIDE CHEQUE NO.000002 DATED 30 TH JULY, 2014. HE HAS ALSO FILED COPY OF THE SALE DEED OF PR OPERTY UNDER REFERENCE IN WHICH IT IS SPECIFICALLY MENTIONED THA T CHEQUE NO.000002 DATED 30 TH JULY, 2014 OF RS.25 LAKHS HAVE BEEN PAID TO THE VENDOR. HE HAS ALSO FILED COPY OF THE BANK S TATEMENT AND CERTIFICATE FROM THE HDFC BANK, IN WHICH IT IS CLAR IFIED THAT 12 ITA.NO.6836/DEL./2017 SHRI ARUN KUMAR JAIN, NEW DELHI. CHEQUE WAS DATED 30 TH JULY, 2014 WHICH WAS GOT CLEARED ON 1 ST AUGUST, 2014. HE HAS, THEREFORE, SUBMITTED THAT ASS ESSEE UTILIZED THE AMOUNT OF THE CAPITAL GAIN BEFORE DUE DATE OF FILING OF THE RETURN OF INCOME. THEREFORE, ADDITION SHOULD BE DELETED. 5. ON THE OTHER HAND, LD. D.R. RELIED UPON THE ORD ERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT IN THE BAN K STATEMENT THE DATE OF CHEQUE IS MENTIONED AS 1 ST AUGUST, 2014. THEREFORE, APPEAL OF ASSESSEE MAY BE DISMISSED. 6. AFTER CONSIDERING THE RIVAL SUBMISSIONS, I DO N OT FIND ANY JUSTIFICATION TO SUSTAIN THE ADDITION. THE ONLY DISPUTE LEFT FOR CONSIDERATION IS, WHETHER ASSESSEE APPROPRIATED /UTILIZED RS.25 LAKHS FOR PURCHASE OF PROPERTY IN QUESTION BE FORE DUE DATE OF FILING OF THE RETURN OF INCOME. LD. D.R. POINTED -OUT FROM THE BANK STATEMENT THAT DATE OF CHEQUE IS 1 ST AUGUST, 2014. HOWEVER, IN THE BANK STATEMENT SUCH DATE IS MENTION ED AS VALUE DATE. IT DID NOT SAY THAT IT IS THE DATE OF THE CHEQUE. THE ASSESSEE FILED COPY OF THE CHEQUE BEFORE LD. CIT(A) TO SHOW THAT DATE OF THE CHEQUE NO.000002 WAS DATED 30 TH JULY, 2014, ON 13 ITA.NO.6836/DEL./2017 SHRI ARUN KUMAR JAIN, NEW DELHI. WHICH, NO ADVERSE COMMENTS HAVE BEEN MADE BY THE LD . CIT(A). THE ASSESSEE FILED BANK CERTIFICATE IN WHICH IT IS CLARIFIED THAT CHEQUE IN QUESTION WAS DATED 30 TH JULY, 2014 WHICH WAS SUBSEQUENTLY CLEARED ON 1 ST AUGUST, 2014. THE ASSESSEE ALSO FILED RECEIPT OF THE VENDOR TO THE SAME EFFECT ALSO . IT MAY ALSO BE NOTED HERE THAT THE COPY OF THE SALE DEED DULY REGI STERED ON 3 RD SEPTEMBER, 2014 FOR PURCHASE OF PROPERTY HAVE BEEN FILED ON RECORD, IN WHICH THE TOTAL CONSIDERATION OF THE PRO PERTY OF RS.80 LAKHS HAVE BEEN MENTIONED WHICH IS ALSO MENTIONED B Y THE A.O. IN THE ASSESSMENT ORDER IN WHICH THE ASSESSEE PAID RS.25 LAKHS EACH ON TWO OCCASIONS VIDE CHEQUE DATED 2 ND APRIL, 2014 AND 15 TH APRIL, 2014. IT IS FURTHER MENTIONED IN THE SALE D EED THAT ASSESSEE PAID FURTHER RS.25 LAKHS VIDE CHEQUE NO.00 0002 DATED 30 TH JULY, 2014. FURTHER PAYMENTS HAVE BEEN MADE VIDE DIFFERENT CHEQUES AND TDS DEDUCTED IS ALSO MENTIONE D. THE ASSESSEE FILED RETURN OF INCOME ON 26 TH JULY, 2015. THEREFORE, THERE IS NO QUESTION OF ASSESSEE MAKING A THEORY OF AFTERTHOUGHT. THE REGISTERED DOCUMENTS SUPPORT THE EXPLANATION OF THE ASSESSEE THAT DATE OF CHEQUE WAS 30 TH JULY, 14 ITA.NO.6836/DEL./2017 SHRI ARUN KUMAR JAIN, NEW DELHI. 2014. EVEN IF THERE WAS ANY DOUBT, THIS FACT COULD HAVE BEEN VERIFIED FROM THE VENDOR. THE LD. CIT(A) REJECTED T HE EXPLANATION OF ASSESSEE THAT WHEN ASSESSEE CAN MAKE PAYMENT OF RS.50 LAKHS IN APRIL, WHY ASSESSEE WAITED TILL THE END OF JULY, 2015. THERE MAY BE SOME TERMS OF PAYMENT OF CONSIDERATION TO THE VENDOR AND THE AVAILABILITY OF THE FUNDS WITH THE A SSESSEE. EVEN THE PAYMENT OF RS.50 LAKHS WAS MADE IN TWO INSTALME NTS. THEREFORE, IT MAY NOT BE A GOOD REASON TO REJECT TH E EXPLANATION OF ASSESSEE BECAUSE ASSESSEE MADE FURTHER PAYMENT E VEN AFTER JULY, 2014 AS PER THE SALE DEED. CONSIDERING THE TO TALITY OF THE FACTS AND CIRCUMSTANCES, IT IS CLEAR THAT ASSESSEE HAD MADE PAYMENT OF RS.25 LAKHS TO THE VENDOR ON 30 TH JULY, 2014 AND IF THE CHEQUE IS ENCASHED IMMEDIATELY THEREAFTER ON 1 ST AUGUST, 2014, THERE IS NOTHING WRONG IN THE EXPLANATION OF ASSESSEE. I AM, THEREFORE, SATISFIED THAT ASSESSEE APPROPRIATED AND UTILIZED THE AMOUNT OF CAPITAL GAIN BEFORE THE DUE DATE OF F ILING OF THE RETURN OF INCOME. THE ADDITION IS, THEREFORE, TOTAL LY UNCALLED-FOR. I, ACCORDINGLY, SET ASIDE THE ORDERS OF THE AUTHORI TIES BELOW AND DELETE THE ADDITION. 15 ITA.NO.6836/DEL./2017 SHRI ARUN KUMAR JAIN, NEW DELHI. 7. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DELHI, DATED 14 TH MARCH, 2018 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT SMC BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.