As per the provisions contained in Sec 54F (4)
(4) The amount of the net consideration which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset took place, or which is not utilised by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset :
Plain reading of this section suggests that the assessee can claim exemption in respect of new acquired property even if the property is acquired after 31st July or 30th September; whichever is applicable due date because the time limit for investment is applicable only if the amount is deposited in the capital gain scheme.
Now my question is-
Sec 139 (1) and sec 139(4) give different due dates. Since, the return u/s 139(4) can be submitted before the expiry on one year after the relevant Assessment Year is over.
If-
1) An assessee having capital gain do not acquire the property and also do not make deposit in the capital gain account prior to the due date u/s 139(1) and
2) Subsequently he procures the property after the due date u/s 139(1) but before due date u/s 139(4); can he claim the exemption in the return filed u/s 139(4)?
3) Property is to be acquired within 3 years of transfer of the original property through which capital gain is accrued; what if; he makes such investment in the property after the due date 139(1); since the new property is purchased within the time frame as given in Sec 54(F)(1); is the exemption allowable?
4) What if the return u/s 139(1) is filed within the time allowed u/s 139(1) and later on the property is acquired. Can the revised return within the time frame allowed to revise the return; be submitted to claim the exemption?
My viewpoint is that these should be allowed. Is this right or wrong?
Can anyone throw the light on this matter?
CAclubindia
