ITO, W-6(2), Mohali V. Sh. Balbir Singh Gill (HUF), Mohali

ITA 844/CHANDI/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4549 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 16-04-2019
• Assessment Year: 2009-2010
• Appeal Filed On: 05-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VANDANA V MOHITE
• Section: 54F; 54; 139

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A, CHANDIGARH , . '.., # $, %& BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ./ ITA NO. 844/CHD/2008 / ASSESSMENT YEAR : 2009-10 THE ITO, WARD-6 (2), MOHALI VS. M/S BALBIR SINGH GILL (HUF), H.NO. 53, PHASE-2, MOHALI ./ PAN NO.AAGHB9652P / APPELLANT / RESPONDENT ! / ASSESSEE BY : SHRI TEJ MOHAN SINGH, ADVOCATE ' ! / REVENUE BY : SMT. VANDANA V MOHITE, SR.DR # $ % / DATE OF HEARING : 16.04.2019 &'() % / DATE OF PRONOUNCEMENT : 30.05.2019 %' / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENU E AGAINST THE ORDER DATED 22.03.2018 OF THE COMMISSIONER OF INCO ME TAX (APPEALS)- 2, CHANDIGARH [HEREINAFTER REFERRED TO AS CIT(A) ]. 2. THE REVENUE IS AGGRIEVED BY THE ACTION OF THE LD . CIT(A) IN DIRECTING THE ASSESSING OFFICER TO GRANT BENEFIT OF DEDUCTION TO THE ASSESSEE U/S 54F OF THE INCOME-TAX ACT, 1961 (IN SH ORT 'THE ACT') WHICH ITA NO. 844-C-18- SH. BALBIR SINGH GILL (HUF), MOHALI 2 WAS DENIED BY THE ASSESSING OFFICER ON THE GROUND T HAT THE ASSESSEE HAD NOT DEPOSITED THE PROCEEDS OF THE CAPITAL GAINS IN THE SPECIFIED CAPITAL GAINS ACCOUNT IN A SCHEDULED BANK BEFORE THE DUE DA TE OF FILING OF THE RETURN U/S 139(1) OF THE ACT. 3. THE LD. CIT(A) DELETED THE ADDITIONS SO MADE BY THE ASSESSING OFFICER OBSERVING AS UNDER:- 6.3.3 IN VIEW OF THE ABOVE DECISIONS OF THE HON'BLE SUPREME COURT, THE HIGH COURT AND THE JURISDICTIONAL ITAT IT IS NOW SETTLED POSITION THAT THE BENEFIT OF THE DEDUCTION U/S 54F IS AVAILABLE IF TH E ASSESSEE HAS INVESTED THE WHOLE AMOUNT OF CAPITAL GAINS BEFORE THE TIME ALLOWED FOR FILING THE RETURN OF INCOME U/S 139(4) SUBJECT TO THE OTHER CONDITIONS OF THE SAID SECTION. IN THE PRESENT CASE, THE EXTENDED TIME FOR FILING THE RETURN OF INCOME WAS AVAILABLE UP TO 31.03.2011 AND THE FACT OF UTILIZATION OF THE CA PITAL GAIN AMOUNT BEFORE 31.03.2011 HAS BEEN ACCEPTED B Y THE AO, AND THEREFORE RESPECTFULLY FOLLOWING THE AB OVE DECISIONS, THE ASSESSEE IS HELD TO BE ENTITLED FOR THE DEDUCTION U/S 54F AND THE DISALLOWANCE MADE BY THE AO IS DELETED. THE GROUND OF APPEAL NO 1 & 2 ARE ALLOWED. 4. A PERUSAL OF THE ABOVE FINDINGS OF THE LD. CIT(A ) REVEALS THAT THE LD. CIT(A), WHILE RELYING UPON THE VARIOUS DECISION S OF THE HIGHER COURTS, HAS NOTED THAT THE ASSESSEE HAD NOT ONLY D EPOSITED BUT ACTUALLY UTILIZED THE PROCEEDS OF THE CAPITAL GAINS AS PER T HE EXTENDED PERIOD PROVIDED U/S 139 (4) OF THE ACT, HENCE, DISALLOWANC E U/S 54F OF THE ACT WAS NOT ATTRACTED. FURTHER, THE UNDISPUTED FACTS O N THE FILE IS THAT THE ASSESSEE HAD INVESTED THE PROCEEDS OF THE CAPITAL G AINS WITHIN THE ITA NO. 844-C-18- SH. BALBIR SINGH GILL (HUF), MOHALI 3 STIPULATED PERIOD FOR PURCHASE OF NEW HOUSE AS PROV IDED UNDER THE PROVISIONS OF SECTION 54F OF THE ACT. 5. CONSIDERING THE WELL-REASONED FINDINGS OF THE LD . CIT(A) AND ALSO CONSIDERING THE BENEFICIAL PROVISIONS OF SECTION 54 F OF THE ACT FOR PROMOTION OF HOUSING, WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF THE LD. CIT(A) ON THIS ISSUE AND THE SAME IS ACCORDINGLY UPHELD. THERE IS NO MERIT IN THE APPEAL OF THE REVENUE AND THE SAME IS ACCORDINGLY DISMISSED. IN THE RESULT, APPEAL OF THE REVENUE IS HEREBY DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30.05.2019. SD/- SD/- ( ' . . , # $ / B.R.R. KUMAR) %& / ACCOUNTANT MEMBER ( / SANJAY GARG ) / JUDICIAL MEMBER DATED : 30. 05.2019 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR ITA NO. 844-C-18- SH. BALBIR SINGH GILL (HUF), MOHALI 4