O.P. GUPTA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) ASSESSEE has filed this appeal under s. 260A of the IT Act, 1961 (for short the 'Act') against the order of the ITAT, action of the AO adding a sum of Rs. 1,06,240 to the total income of the assessee as capital gain by way of an

(2.) ADJUSTMENT under s. 143(1)(a) of the Act. income of Rs. 26,450. Along with the return, statement of capital gain was attached showing net realisation on sale of a plot at Anand Vihar, New Delhi at Rs. 4,95,000 and after deducting an initial cost of Rs. 23,000, capital gain was shown at Rs. 4,72,000. The assessee had further claimed benefit under s. 54F of the Act showing investment in purchase of amount of Rs. 3,28,400 (Rs. 4,72,000 -1,43,600) had been deposited in Punjab National Bank, Faridabad in account No. 9248 to be utilised for construction of house within the permissible period. Hence the taxable capital gain was shown as 'nil'. assessee to specify the nature of account No. 9248 with the Punjab National Bank, Faridabad, along with the proof of consideration of Rs. 5 lakhs received on sale of plot in Anand Vihar was deposited.

(3.) IT was further explained that assessee had also purchased a plot for constructing a residential house for a sum of Rs. 1,43,607 and the construction on the said plot was in progress and the balance amount of sale consideration would be utilised for the said construction that the unutilised amount of sale consideration had to be deposited under the head "Capital Gains Account Scheme, 1988" and not in a saving bank account or FDR account as was done by him.