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TMI Blog2014 (3) TMI 466X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Revenue. - ITA No. 2799/Ahd/2010 - - - Dated:- 13-3-2014 - Sri N. S. Saini And Shri Kul Bharat,JJ. For the Petitioner : Sri K. C. Mathews, Sr. D. R. For the Respondent : Sri S. B. Vaidya, A.R. ORDER Per : N. S. Saini, Accountant Member:- This is a appeal filed by the revenue against the order of Ld. CIT(A)- IV Surat dated 01-07-2010 by taking the following grounds of appeal:- 1. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the disallowances of claim of exemption u/s. 54 B of the Act of Rs. 66,72,750/- 2. On the facts and circumstances of the case and in law , the Ld. CIT(A) has erred in accepting the additional evidences furnished during the appellate stage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption u/s. 54B in the computation and also in the assessment proceedings. The AO observed that when the fault was found by the assessee during the assessment proceedings which led to change in the claim which was nothing but an afterthought. The AO stated that the assessee neither sold nor purchased agricultural land and unless these requirements are satisfied, the assessee could not claim the benefits of provisions of section 54B. The assessing officer observed that alternatively if the assessee's contention is considered regarding the claim of section 54F, it was gathered in inquiry made through an inspector that no new house was constructed on the newly purchased land in the last 3 years and if the field report contradicted the clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31-07-2007 and it started applying the funds from the said bank account from the very next month for construction activities. The appellant had also purchased a plot of land during the financial year relevant to assessment under appeal. These facts clearly showed the intention of the appellant of constructing a residential house out of sales proceeds of non agricultural land sold by it. I also found force in the argument of the AR that if there was any intention of claiming exemption U/s, 54B of the Act then the appellant would not have utilized the amount from the Capital Gain Scheme Account for the purpose of construction activities of residential house immediately after opening the said account. The development permission issued by the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said certificate was issued on 27-10-2008. All these facts suggested that the appellant had completed the residential work of residential house within the time limit prescribed U/s. 54F of the Act. A copy of pass book of Capital Gains Scheme Account also showed the application of the entire deposited amount towards construction work and therefore, I have no reason to believe the fact of inspector's report that there was no existence of any construction of a building on the plot of land. Thus, all the facts and evidences clearly proved that the appellant had legitimately claimed exemption U/s. 54F of the Act and therefore, the assessing officer is not justified in rejecting the claim of exemption of Rs. 66,72,750/-. 4. Ld. DR su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the parties have agreed that the issue should be restored back to the file of AO for adjudication of the issue afresh after examining all the evidences in connection with the claim of the deduction u/s. 54F to the assessee, we set aside the orders of lower authorities and remand the matter back to the file of AO to adjudicate the issue afresh after examining all the evidences in connection with the claim of the assessee for deduction u/s. 54F of the Act. Needless to mention he shall allow reasonable and proper opportunity of hearing to the assessee before adjudicating the issue afresh as per law. This ground of appeal of the revenue is allowed for statistical purpose. 7. In the result, the appeal of the revenue is allowed for statistic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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