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TMI Blog2017 (1) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... new land out of advance received against the sale of agricultural land. First of all, the investment made is in violation of provisions of section 54B of the Act and secondly, despite opportunity being allowed to the assessee, the assessee has not appeared nor filed translated copies of Marathi documents of sale deed nor has furnished any other evidence to prove its case. In view thereof, there is no merit in the claim of assessee and the same is rejected. - Decided against assessee Un-reconciled purchases vis-à-vis TCS Certificate - Held that:- The assessee had agreed that there was difference in purchase figure and had also accepted adoption of GP addition on the said purchases. However, the assessee offered 10% on the said unreconcil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) has erred in holding, as stated in para-5 of his order dated 28.09.2015, that only investments made after the date of sale transaction attracting capital gain are eligible for deduction u/s.54B. The decision of the CIT(A) is contrary to the decision of Hon'ble ITAT Pune Bench, Pune in the case of Shri Subhash Vinayk Supnekar V/s. ACIT reported in (2013) 158 TTJ (Pune) 237 wherein it was held that investments made out of advance on earnest money prior to the date of sale transactions attracting capital gain, is eligible for deduction u/s. 54EC. The decision is squarely applicable for deduction u/s.54B also. However, the Hon'ble CIT(A) in para 5 of his order held the decision of the Hon'ble ITAT Pune as premature one due to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he basis of gross profit ratio shown by the appellant for which AR of the assessee agreed. The Hon'ble ITAT Pune is requested to reduce the addition by ₹ 183275/- retaining addition of ₹ 100415/- i.e. 10% difference in purchases as agreed. 3. Despite service of notice, none appeared on behalf of the assessee nor any application was moved for adjournment. The assessee has filed written submissions, which are placed on record. 4. The learned Departmental Representative for the Revenue on the other hand, placed reliance on the orders of authorities below. 5. Briefly, in the facts of the case, the assessee derives income from medical practice and was also running hospital and hotel. For the year under consideration, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of assessee on agreed basis. 6. The CIT(A) noted the contention of assessee vis- -vis denial of deduction under section 54B of the Act that part consideration was received prior to the execution of sale deed, which in turn, was invested for purchase of land. However, the assessee failed to furnish any evidence in this regard nor any bank statement evidencing the advance payment, any receipt of money or purchase and sale deed or any other document and hence, the said plea of assessee was rejected. In respect of second ground of appeal, the CIT(A) observed that where the assessee had failed to reconcile the purchase figure of wine as per TCS Certificate, the Assessing Officer had applied GP rate on the un-reconciled purchases, whereas th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultural land on 16.07.2010 and on 30.09.2010, there is no merit in the claim of assessee for deduction under section 54B of the Act. Another point which was raised by the assessee was that the investment for purchase of new land out of advance received against the sale of agricultural land. First of all, the investment made is in violation of provisions of section 54B of the Act and secondly, despite opportunity being allowed to the assessee, the assessee has not appeared nor filed translated copies of Marathi documents of sale deed nor has furnished any other evidence to prove its case. In view thereof, there is no merit in the claim of assessee and the same is rejected. The grounds of appeal No.1 and 2 raised by the assessee are thus, dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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