Smt. Ritu Singh, Delhi vs Ito, New Delhi on 24 February, 2023
18. The decision in Dr. Dharmista Mehta's case (supra) applies squarely
to the facts of the assessee's case before us. The Ld. AR has also placed
reliance on the decision of Hon'ble Karnataka High Court in CIT vs. K.
Ramchandra Rao 56 taxmann.com 163 wherein it is held that if the
intention was to invest in either purchase or construction of a residential
house, then the conditions under section 54F and under section 54 relating
to deposit of money under capital gains account scheme would not apply.
Since the assessee before us made investment of Rs. 35,04,400/- which
was more than the balance LTCG of Rs. 33,21,868/- and paid the
substantial amount of Rs. 21,72,752/- before the due date of filing belated
return and thereafter paid full consideration, the disallowance for
exemption under section 54 of Rs. 11,49,116/- made by the Ld. AO is not
10
ITA No. 6504/Del/2016
sustainable.