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TMI Blog2017 (12) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... ayawada dated 30.9.2015 for the assessment year 2012-13. 2. Facts are in brief that the assessee is a HUF derived income from the capital gains during the year filed a return of income by admitting Nil income after claiming exemption u/s 54B of the Income Tax Act, 1961 (hereinafter called as 'the Act'). In the assessment order, the A.O. has noted that the assessee has sold agricultural land situated at Prasadampadu, Vijayawada for a consideration of 62,54,000/-. After claiming cost of inflation index, the assessee has arrived capital gains at 52,61,455/-. The assessee has invested the sale consideration in purchase of agricultural lands at Mylavaram to the tune of 59,71,015/- and claimed capital gains exemption u/s 54B of the Act. During the course of assessment proceedings, the A.O. has asked the assessee that how you are eligible for exemption u/s 54B of the Act. The assessee has submitted before the A.O. that section 54B of the Act not excluded the HUF. It has only mentioned the assessee or a parent of his . This part of the section was amended by the Finance Act, 2012 w.e.f. 1.4.2013. This amendment is clarificatory in nature and prayed that exemption u/s 54B of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions in Finance Bill 2012, it is stated as follows: It is proposed that this benefit be also granted to a HUF. Accordingly, it is proposed to amend the provisions of section 54B of the Income Tax Act to provide that the rollover relief is available if the land is used for agricultural purposes by an individual or his parent or by a HUF. The amendment will take effect from 1st day of April, 2013 and will accordingly apply to the assessment year 2013-14 and subsequent Assessment Years . 6.6 Following are some principles enunciated regarding principle of strict/ reasonable construction. a) 'If the person sought to be taxed comes within the letter of the law he must be taxed, however the great hardship may appear to the judicial mind to be. On the other hand, if the Crown seeking to recover the tax, cannot bring the subject within the letter of the law, the subject is free. however apparently within the spirit of law the case might otherwise appear to be (Lord Cairns) b) In a taxing Act one has to look merely at what is clearly said. There is no room for any intendment. There is no equity about a tax. There is no presumption as to tax. Nothing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory only if the statute itself expressly and unequivocally states that it is a declaratory and clarificatory provision. If there is no such clear statement in the statute itself, the amendment will not be considered to be merely declaratory or clarificatory. Even if the statute does contain a statement to the effect that the amendment is declaratory or clarificatory, that is not the end of the matter. The Court will not regard itself as being bound by the said statement made in the statute but will proceed to analyse the nature of the amendment and then conclude whether it is in reality a clarificatory or declaratory provision or whether it is an amendment which is intended to change the law and which applies to future periods Sl. No. Appellant s Claim in his letter dated 12.8.2015 Remarks 1. Nowhere in the section was it stated the HUF is not eligible to claim the deduction u/s 54B of the Income Tax Act or individual only eligible. However, the Learned Assessing Officer held that only individual is eligible which is against the Law In the case of CIT Vs. Devara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may also observe that the reasoning of the Tribunal, in this case, is based upon an interpretation of section 54 of the Act and the words used by the qssessee or a parent of his mainly for the purpose of his own or his parents own residence had been interpreted as contemplating only the case of an assessee who is an individual and not a Hindu undivided family or a firm vide Rowji Sojpal v CIT (1957) 31 ITR 721 (Bom.) K.I. Viswambharan and Bros. v. CIT (1973) 91 ITR 588 (Ker) (FB) and Shrigopal Rameshwardas v. Addl. CIT (1979) 119 ITR 980 (MP). We are relieved of the necessity of making a detailed reference to those cases, as they had arisen under section 12B(4) of the 1922 Act and section 54 of the 1961 Act, where the language employed is different from that found in section 54B of the Act. It would also be pertinent to point out that, by section 19 of the Finance Act, 1987, in section 54(1) of the Act, a Hindu undivided family has also been included. The legislative change thus brought about is also an indication that what had been contemplated by assessee under section 54(1) of the Act was not a Hindu undivided family but only an individual. While a change had been brought i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iterated the submissions, which he made before the CIT(A). 5. On the other hand, the Ld. D.R. strongly supported the order passed by the authorities below. 6. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The only issue involved in this appeal is whether the assessee is entitled for exemption u/s 54B of the Act. It is an undisputed fact that the assessee is a HUF and the assessment year under consideration is A.Y. 2012-13. As per section 54B of the Act, the assessee or a parent of his are eligible for claiming exemption u/s 54B of the Act . Subsequently, by Finance Act, 2012 w.e.f. 1.4.2013, section 54B of the Act is amended, which says that the assessee being an individual or his parent or a Hindu undivided family . The subsequent amendment made by the Finance Act, 2012 applies only for the assessment year 2013-14 and not for the A.Y. 2012-13. Therefore, the assessee is not entitled to claim exemption u/s 54B of the Act. Hence, we find no infirmity in the order passed by the Ld. CIT(A). 7. In the result, the appeal filed by the assessee is dismissed. The above order was pronounced in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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