The Income Tax Appellate Tribunal (ITAT), Delhi bench has held that the amount once invested in the capital gain scheme cannot be brought to tax in the year of the investment itself without considering the utilization within the period allowed under the said scheme.
The assessee, Shri Sandeep Taneja, is an individual. On the first appeal, the Commissioner of Income Tax (Appeals) is eligible for benefit of provisions of Section 54F of the Act in view of investing Rs 6 Cr. in the prescribed Capital Gains Account Scheme and on account of his having fulfilled other relevant conditions, as applicable for AY 2014-15.
The Tribunal bench comprising Dr. B.R.R.Kumar, Accountant Member and Sh. Anubhav Sharma, Judicial Member held that “the findings of Ld CIT(A) of allowing claim of assessee on basis that it failed to consider the detailed enquiry of Ld. AO but the Bench is of the considered opinion that the ld. CIT(A) after taking into consideration, the entire facts of the case viz., date of purchase, date of sale, date of investment in capital gain scheme held that the assessee is eligible for claim u/s 54F of the Income Tax Act, 1961. Notwithstanding anything, the amount once invested in the capital gain scheme cannot be brought to tax in the year of the investment itself without considering the utilization within the period allowed under the said scheme.”
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