9911796707
TMI Blog2017 (1) TMI 1054X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Assessee is an individual aged 70 years, owned certain lands in Miryalaguda, to an extent of Ac. 5.16 Guntas of agricultural land. Out of the said land, 25 Guntas was acquired by RDO, Miryalaguda on 19-09-2002 for the purpose of development. The balance of the land available with assessee was about 4.31 Guntas. Assessee was undertaking agricultural operations and due to the proximity to the road, converted into plots and sold them after making certain development work. In the bargain, assessee claimed she has spent an amount of Rs. 14,25,508/- in AY. 2008- 09 and balance in AY. 2009-10. Assessee sold the said land and stated to have re-invested the amount to an extent of Rs. 14,06,465/- by purchasing agricultural lands, but in the name o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are of the opinion that action of the AO in disallowing to the extent of 25% is not justifed. While allowing 75% of the expenditure, no reason was given by the AO except that assessee did not furnish necessary details to expenditure and the same is also excessive. Considering that assessee could not furnish complete details of expenditure, keeping in mind of the reasonableness of the claim and also the fact that AO has accepted 75% of expenditure, we are of the opinion that the disallowance can be restricted to 10% of the expenditure claimed. AO is directed to allow the expenditure accordingly and re-workout the capital gains. 5. The next issue in AY. 2008-09 is with reference to the claim of exemption for purchase of agricultural land u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ears immediately preceding the date on which the transfer took place, was being used by [the assessee being an individual or his parent, or a Hindu undivided family] for agricultural purposes [(hereinafter referred to as the original asset)], and the assessee has, within a period of two years after that date, purchased any other land for being used for agricultural purposes, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say,- (i) if the amount of the capital gain is greater than the cost of the land so purchased (hereinafter referred to as the new asset), the diffe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irect the AO to examine whether sale proceeds are invested in the agricultural land so purchased from the funds of assessee. In view of that, while accepting the legal claim, allowance of the same is directed to be verified. In the result, ground is considered allowed for statistical purposes. 7. In the result, appeal of assessee in AY. 2008-09 is allowed. 8. Coming to AY. 2009-10, the only issue is with reference to claim of development expenditure in this year. As in earlier year, the AO has restricted the amount to 75% of the claim. For the reasons stated in para 4, we are of the opinion that the action of the AO in restricting the amount to 25% of the claim is excessive, therefore, we restrict the amount to 10% of the claim. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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