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Beneficial Judgment : Assessee eligible to claim sec. 54F exemption if new house is purchased up to due date of filing of belated ITR.
Here is an interesting Judgement by Delhi ITAT which has concluded that Assessee is eligible to claim sec. 54F exemption if new house is purchased up to due date of filing of belated ITR.
It was so held in the case of
Smt. Vatsala Asthana v. ITO –  110 taxmann.com 173 (Delhi – Trib.).
The assessee transferred a plot of land and purchased a new residential house. He claimed deduction under section 54F in respect of the amount invested in purchase of new residential house. AO allowed the assessee’s claim to the extent the payment was made for purchase of new asset till the due date of filing of return of income under section 139(1).
Assessee raised a plea that the provisions of section 54F are beneficial provisions for promoting construction of the residential house. Therefore, the due date of return filing should be considered as per section 139(4), i.e., due date for filing of belated return. The CIT(A) rejected the assessee’s plea and upheld the order passed by the AO.
The Delhi Tribunal held that the assessee’s due date for filing of return under section 139(1) was 31.07.2012 and as per section 139(4) was 31.03.2014. In view of the various earlier decided cases, it could be said that the payment made by the assessee up to the due date prescribed under section 139(4), i.e., 31.03.2014 was allowable while considering the deduction under section