JAYANT S. JAIN,MUMBAI vs. ASST CIT CIR 15(2), MUMBAI

During the course of hearing it has been submitted before us that the assessee had constructed the new house property within a stipulated period of three years. All the conditions have been complied with regard to section 54 of the Act. The only grievance of the lower authorities was that the unutilised amount was not deposited in the specified bank account before filing of the return. Ld. counsel has 2 ITA No.2624/M/14-Jayant S. Jain submitted petition u/r. 29 for admission of additional evidences showing that house was completed within a stipulated period of three years. It has been argued that since the substantive compliance had been made of the law, the benefit of deduction should not be denied merely on some procedural reasons. He has also submitted details showing payment made by the assessee towards construction of new residential house property for an amount aggregating to Rs.28,97,570/-.

On the other hand, ld. DR has submitted that assessee is obliged under the law to make compliance of the conditions stipulated therein, if, he seeks to get some benefits provided under the law. However, he showed no serious objection in case matter is sent back to Assessing Officer for verification of the facts based on fresh evidences sought to be filed by the assessee, by way of aforesaid petition under rule-29. 4. We have heard both the parties. From the evidences brought before us it appears that assessee has completed construction of the house property. Thus, the main object of law as contained in section 54, to develop new residential units has been achieved. The only grievance of the Revenue now is with regard to non deposit of unutilised amount in the specified bank account by the assessee. In this regard both the parties agreed during the course of hearing that assessee can be granted the benefit of section 54 with respect to the amounts which the assessee has utilised in construction of house property up to the time period available for filing of return u/s. 139(4) of the Act. Thus, keeping in view position of law, facts and evidence brought before us and submissions made by both the parties before us, we deem it appropriate to send this issue back to the file of the Assessing Officer with the direction that amount utilised by the assessee towards construction of house property up to the date of time period allowed for filing of return u/s.

As a result, this appeal is treated as partly allowed.

DR, ITAT, Mumbai गाड" फाईल / Guard file. 6. आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार स"यािपत "ित //// उप उप उप/सहायक उप सहायक सहायक पंजीकार सहायक पंजीकार पंजीकार पंजीकार (Dy./Asstt.