9911796707
TMI Blog2018 (4) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... al gain on sale of agriculture land. Hence, the ld.AO has invited his explanation as to why he failed to disclose long term capital gain. In response to the query of the AO, the assessee submitted reply wherein he has filed details of transactions in tabular form exhibiting serial number, date, particulars etc. Such details have been reproduced by the AO in para 3 of the assessment order. In order to appreciate the controversy in more scientific way, we deem it appropriate to take note of relevant details, which reads as under: Sr. No. Date Particulars Amount 1- 24.05.2022 Sale of Agricultural Land. (Deed Filed) 3,53,48,750/- 2. 25.03.2008 Purchase of Agricultural Land. (Deed Filed) 6,66,000/- 3. Indexed Cost of Acquisition of Purchase of Land(6,66,000*852/551) 20,29,822/- Total Gross Amount of Long Term Capital Gain on Sale of Agricultural Land DETAILS ABOUT STATUTORY DEDUCTION : U/S54F & 54-B OF THE ACT 3,43,18,928/- A. Total Amount Invested in Purchase of New Residential House located at Bunglow No.35, Amaranthus Villa, MoujeBhadaj, Ahmedabad. within 2 years from the date of sale of Agricultural Land as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 5,00,000/- 19.02.2013 Agricultural Land bearing survey no 11 at moujegota. 1,00,000/- 20.09.2013 Agricultural Land bearing survey noil at moujegota. 85,000/- TOTAL (3) 24,15,000/- (B-} Total Investment made for purchase of New Agricultural Lands. (1+2) 1,15,65,000/- Total Investment Made for purchase of New Agricultural lands and Purchase of New Residential House (A+B) 2,62,60,423/- NOW THE RESPECTIVE DEDUCTIONS U/S 54-B & 54F IS AS UNDER A) DEDUCTION U/S 54-B - TOTAL AMOUNT OF INVESTMENT MADE WITHIN TIME PRESCRIBED B) PROPORTIONATE DEDUCTION U/S 54F-TOTAL AMOUNT OF INVESTMENT MADE WITHIN TIME PRESCRIBED TO THE NET CONSIDERATION AMT. OF CAPITAL GAIN X COST OF NEW HOUSE NETSALES CONSIDERATION 138,78,952/- i.e Rs. 3,43,18,928/x 142,95,423/- 3,53,48,750/- Total Deduction U/s 54B & 54-F 2,58,43,952/- Net Long Term Capital Gain (Rs.3,53,48,750/- Les ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de investment and made payments to vendors. He took us through details compiled in the paper book at page no.19 wherein he showed complete details of payments made to six vendors starting from 11.9.2012 upto 26.12.2013. He pointed out that identity of vendors is not in dispute. The AO has accepted the claim of the assessee qua payments made upto serial no.9 i.e. payments made upto 20.9.2013. This payment was accepted by the AO on the ground that these were made before due date of filing of return, whereas, the ld.AO ought to have examined the case of the assessee for the payments upto 31.5.2014. According to the ld.counsel for the assessee, even if the assessee has not challenged addition made by the AO, that does not mean that he would be visited with penalty. The addition itself is not sustainable. He also took us through evidence exhibiting receipt of payment by all six vendors. On the strength of details, he submitted that there is no mala fide at the end of the assessee. He has not shown capital gain on sale of agriculture land because he remained under bona fide belief that since he has made investment in new agriculture land no capital gain liability is available upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purposes of Clause (c) of this sub-section, be deemed to represent the income in respect of which particulars have been concealed." 8. A bare perusal of this section would reveal that for visiting any assessee with the penalty, the Assessing Officer or the Learned CIT(Appeals) during the course of any proceedings before them should be satisfied, that the assessee has; (i) concealed his income or furnished inaccurate particulars of income. As far as the quantification of the penalty is concerned, the penalty imposed under this section can range in between 100% to 300% of the tax sought to be evaded by the assessee, as a result of such concealment of income or furnishing inaccurate particulars. The other most important features of this section is deeming provisions regarding concealment of income. The section not only covered the situation in which the assessee has concealed the income or furnished inaccurate particulars, in certain situation, even without there being anything to indicate so, statutory deeming fiction for concealment of income comes into play. This deeming fiction, by way of Explanation I to section 271(1)(c) postulates two situations; (a) first whether in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of return. Thus, the question which arose is whether the assessee has made any deliberate attempt for concealment of income. Whether the assessee could harbor a belief that since he has made an investment of Rs. 1,09,82,400/- in purchase of agriculture land which could have been purchased within two years from the sale of agriculture land and after such an investment no capital gain liability would be upon him. If we compare this belief haboured by the assessee with addition of Rs. 84,76,976/- then it would reveal that this Rs. 84,76,976/- addition has been resulted on account of not accepting claim of assessee of payment amounting to Rs. 85,77,400/-, which is more than the addition made by the AO. In order to show his bona fide the assessee has produced details of payment made to the vendors. The assessee has produced their identity, copy of sale deed and copies of receipts executed by the vendors. To our mind, a layman could easily habour a belief that since he has already invested total capital gain in purchase of new agriculture land, therefore, there might not be any liability of tax qua alleged capital gain. It is a different matter that he has not challenged additionas well ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
