Amount received from immovable property if invested within the time allowed under sec 139(4) is entitled for exemption under sec 54

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Facts, in brief, as per relevant orders are that return declaring income of Rs.7,08,754/-filed on 04.03.2009 by the assessee, after being processed u/s 143(1) of the Income-tax Act, 1961 (hereafter referred to as the Act), was selected for scrutiny with the service of a notice issued u/s 143(2) of the Act. During the course of assessment proceedings, the Assessing Officer (A.O. in short) noticed that one Shri Prem Lal became a member of Burma Shell Co-operative Society Ltd. in the year 1951 by acquiring one share of Rs.25/- of the said society. On his death on 19.01.1980, the membership of the society was transferred to his wife Smt. Kamla Devi on 31.08.1980. Later, the conveyance deed of plot no.25, Aradhana Colony, R.K. Puram, Sector-13, New Delhi, admeasuring 370 sq. yards was executed by the society in favour of Smt. Kamla Devi on 06.02.1984. On her death on 08.03.1986, the said plot was transferred in the name of her two daughters Smt. Rama Rani Mathur and Smt. Prabha Chandra. These two ladies entred into a colloboration agreement on 10.04.1990 with M/s Ahluwalia Contracts (I) Pvt. Ltd. for the construction of a house on the said plot. The ground floor and basement was to be given to the builder whereas 1st floor and 50% of the roof above 2nd floor to Smt. Rama Rani Mathur and the 2nd Floor and 50% of the roof over second floor was given to Smt. Prabha Chandra. Besides, 50% share in the land was given to the builder and 50% to Smt. Rama Rani Mathur and Smt. Prabha Chandra. Smt. Prabha Chandra died on 28.11.1994, leaving behind Sh. Bipin chandra (husband) and Smt. Sapna Dimri (daughter) as her class one legal heirs. Subsequently, on sale of the share inherited by Shri Bipin Chandra and Smt. Sapna Dimri, the assessee reflected 50% of her share in capital gain on sale of second floor in the aforesaid property at Rs.3,04,094/-

Citation :
ACIT,Circle 45(1), Room No.311, Mayur Bhawan,New Delhi(Appellant)V/s. Smt . Sapna Dimri C-2/11, Vasant Vihar,New Delhi [PAN: AEXPD 5808 G] (Respondent)