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TMI Blog2012 (5) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... ome from capital gain. A deduction of Rs. 25 lakhs was claimed as exemption under section 54 of the Income-tax Act on account of capital gains utilised for the purchase of residential house. In support of its claim the assessee furnished copy of iqrarnama executed on May 10, 2005 for the purchase of residential house. During the assessment proceedings the assessee was unable to produce the seller or any other evidence to substantiate the genuineness of the so-called iqrarnama. The Assessing Officer made independent enquiries by deputing the inspector and as reported, no such person was located at the address given by the assessee. The Assessing Officer thus observed that the authenticity of the iqrarnama could not be proved. Even the said i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... misplaced. The penalty levied by the Asses sing Officer was thus upheld. The assessee is in appeal against the said order of the Commissioner of Income-tax (Appeals). The learned authorised representative for the asses see pointed out that no penalty under section 271(1)(c) of the Act is leviable in this case in view of the ratio laid down by the hon'ble Supreme Court in the case of CIT v. Reliance Petroproducts P. Ltd. [2010] 322 ITR 158 (SC) and the hon'ble Punjab and Haryana High Court in the case of CIT v. Shahabad Co-op. Sugar Mills Ltd. [2010] 322 ITR 73 (P and H). The learned authorised representative further placed reliance on the ratio laid down by the hon'ble Rajasthan High Court in the case of Chandrapal Bagga v. ITAT [20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which was not registered with any authority and was also cancelled on June 13, 2006. The Tribunal (supra) vide order dated May 28, 2009 in paragraph 11 observed a under:- "11. We have considered the rival submissions carefully. We have also carefully perused the orders of the income-tax authorities as well as the material to which our attention has been drawn during the course of hearing. At the outset, it would be pertinent to observe that the claim of the assessee for exemption under section 54 of the Act has been declined by the Assessing Officer on the plea that purchase of the new residential house could not be established. This has been so held because according to the Assessing Officer, the iqrarnama filed by the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said property was ever taken over by the assessee and consideration paid so as to attract the provisions of section 53A of the Transfer of Property Act, 1882. Thus, on this point also, the assessee cannot be said to have purchased the residential house within the meaning of section 54 of the Act. Thus, in our considered opinion, the income-tax authorities were justified in inferring that the assessee has failed to establish the authenticity of the iqrarnama in question and consequently the assessee has failed to establish that he has purchased a new residential house so as to claim the benefit of exemption under section 54 of the Act." The Tribunal further observed that the capital gain on the cancellation of the iqrarnama on J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee upon the ratio laid down by the hon'ble apex court in Reliance Petroproducts P. Ltd. [2010] 322 ITR 158 (SC). We find no merit in the reliance of the learned authorised representative for the assessee upon the ratio laid down by the hon'ble Rajasthan High Court in the case of Chandrapal Bagga v. ITAT [2003] 261 ITR 67 (Raj), wherein the claim of long-term capital gain was taxed as short-term capital gain in the hands of the assessee and penalty levied under section 271(1)(c) of the Act was cancelled as the assessee was found to have claimed exemption after disclosing the relevant basic facts. However, in the facts of the present case before us, as held by the Tribunal (supra) in the case of the assessee that the claim of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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