Capital Gain exemption available even if amount not deposited in Capital Gain Deposit Account Scheme

Where assessee received compensation on compulsory acquisition of his land by RIICO and at time of filing of return of income, entire compensation stood deposited in savings bank account maintained with HDFC bank which was opened specifically for purpose of depositing compensation received by assessee(substantial compliance of section 54F(4)) and withdrawals had been limited to extent of purchase of plot of land and partial construction thereon, assessee’s claim for deduction under section 54F could not have been denied on ground that amount of capital gain was not deposited in Capital Gains Account. Further, said bank account of assessee had been attached by department, therefore, there was no way assessee could have met deadline for constructing new house. Thus, in view of above facts assessee would be entitled to exemption under section 54F

[2019] 102 taxmann.com 50 (Jaipur – Trib.)
IN THE ITAT JAIPUR BENCH ‘A’
Goverdhan Singh Shekhawat
v.
Income Tax Officer, Ward- 6(1), Jaipur
VIJAY PAL RAO, JUDICIAL MEMBER
AND VIKRAM SINGH YADAV, ACCOUNTANT MEMBER
IT APPEAL NO. 517 (JP.) OF 2013
[ASSESSMENT YEAR 2009-10]  JANUARY  11, 2019