April 2019

Section 54F Deposit of the amount of capital gains in a separate savings bank account and utilisation thereof for the purposes specified u/s. 54F is said to be substantial compliance with the requirements of section 54F.

Jagdish T. Punjabi | Devendra Jain | Tejaswini Ghag
Chartered Accountants

3.       [2019] 102 taxmann.com 50 (Jaipur) Goverdhan Singh Shekhawat vs. ITO ITA No.: 517/JP/2013 A.Y.: 2009-10  Dated: 11th January, 2019

 

Section 54F Deposit of the amount of capital gains in a separate savings bank account and utilisation thereof for the purposes specified u/s. 54F is said to be substantial compliance with the requirements of section 54F.

 

FACTS


The assessee, an individual, received certain compensation on compulsory acquisition of land. The assessee offered the said receipts as long-term capital gains and claimed exemption u/s. 54F of the Act by depositing the amount of capital gains in a separate savings bank account. The assessee contended that the amount of gains was deposited under Capital Gains Accounts Scheme 1988. The Assessing Officer (AO) observed that the account in which amount was deposited by the assessee was not a Capital Gains Scheme Account and therefore denied exemption u/s. 54F of
the Act.

 

Aggrieved the assessee preferred an appeal to the CIT(A) who confirmed the order of the AO.

 

Aggrieved, the assessee preferred an appeal to the Tribunal.

 

HELD

The Tribunal noted that the undisputed facts viz. that despite having an existing account in another bank, the assessee opened a new bank account and deposited not only the a

--->

Past Issues

Flip-Book
HTML View
Current Issue