2007 (1) TMI 589 - AT - Income Tax

Summary

Issues Involved:
Cross appeals against the order dated 11.6.2004 of CIT(A) Panchkulla for the assessment year 1996-97.
Assessee's Appeal (I.T.A. No. 3559/Del/2004):
1. Challenge to the order of Ld CIT (A) as bad in law.
2. Dispute over deduction u/s 54B for investment in agricultural land in the name of the assessee's mother.
3. Disagreement with the direction to verify bank account for determining correct income from other sources.
Revenue's Appeal (I.T.A. No. 3774/Del/2004):
1. Dispute over fair market value adoption @ Rs. 4,00,000 per acre as on 1.4.1981 instead of indexed cost taken to Rs. 3,20,000.

Assessee's Appeal Details:
The assessee argued that section 54B does not mandate land purchase in the assessee's name, citing relevant case law. However, Ld DR contended that specific provision is absent in section 54B for investments in family members' names. Tribunal upheld Ld CIT (A)'s decision, emphasizing the necessity of investment in the assessee's name for exemption under capital gains.

Revenue's Appeal Details:
The dispute revolved around the fair market value adoption for property. The Tribunal, following precedent, upheld Ld CIT (A)'s decision to adopt the value at Rs. 4 lakhs per acre as on 1.4.1981, rejecting the revenue's appeal.

Conclusion:
The appeals were dismissed, affirming Ld CIT (A)'s orders in both cases. The Tribunal upheld the requirement of investment in the assessee's name for exemption under section 54B and the fair market value adoption for property valuation.