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ITAT Mumbai Dismisses Section 54 Exemption Claim Due to CGAS Non-Deposit

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Summary

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  • The ITAT Mumbai has dismissed the appeal of Biswaranjan Sen for AY 2017-18, upholding the restriction of exemption under Section 54 of the Income-tax Act due to non-deposit of unutilised capital gains in the Capital Gains Account Scheme.
  • The assessee had claimed an exemption on ₹2,27,85,907 from selling two properties but was allowed only ₹1,95,68,739 after the CIT(A) recognized them as a single residential unit.
  • The Tribunal emphasized that the deposit requirement under Section 54(2) is mandatory and followed binding precedent from the Bombay High Court in Humayun Suleman Merchant v. CCIT.
  • This ruling reinforces strict compliance with

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