Anita Ajay Shad v. ITO
Decision: Against the assessee.

Capital gains–Deduction under section 54– Investment in new asset after furnishing of return under section 54

Capital gains

Facts:
Assessee sold certain property and claimed deduction under section 54 in respect of proceeds. Invested in new property after furnishing the return of income but before extended the due date of filing of return, AO denied the deduction.
Held:
When an assessee furnishes return subsequent to due date of filing return under section 139(1) but within the extended time limit under section 139(4), the benefit of investment made up to the date of furnishing return of income under 139(4) cannot be denied on such beneficial construction of section 54(2), however, any investment made after furnishing of return of income but before extended date available under section 139(4) would not receive beneficial construction in view of unambiguous and express provision of section 54(2), unless the same was first deposited in capital gains account scheme and utilized therefrom.

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