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TMI Blog2019 (3) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... contention of Learned A. R. that shifting of premises was a continuous process which ended with the sale of land received as sale consideration has no force as the assessee had already availed exemption u/s 54G in the earlier year treating the land received as part of consideration as the investment in non-urban area and in the year under consideration the capital gain has arisen from sale of land in non-urban area. The learned CIT(A) has very categorically held that in the year under consideration the transfer of land was from a non-urban area to a non-urban area and therefore, section 54G was not applicable. The findings of learned CIT(A) are quite relevant - Decided against assessee. - ITA No.693/Lkw/2018 - - - Dated:- 8-3-2019 - Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rore which was adjacent to the land sold at Chinhat Deva Road which is a Non-Urban Area and industrial undertaking was set up to carry on the manufacturing activity. On the said transaction the assessee has claimed the surplus of ₹ 60,70,996/- as exempt u/s 54G being gain on shifting of industrial undertaking from urban to Non-Urban Area. The Assessing Officer denied the claim u/s 54G due to the reason that Exemption u/s 54G is allowed when the Industrial Undertaking is shifted from Urban to Non-Urban area in the year in which shifting takes place. Being aggrieved with the action, the assessee went in appeal before learned CIT(A), the learned CIT(A) upheld the action of the Assessing Officer. Now the assessee is in appeal before us. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Sec 54G provides for 3 year period to make investment of gain. The assessee has invested the entire gains of financial year 2011-12 and 2012-13 into bringing in existence the new manufacturing set up in non-urban area. He submitted that learned CIT(A) was not justified in confirming the action of Assessing Officer. 4. Learned D. R., on the other hand, supported the orders of the authorities below. 5. We have heard the rival parties and have gone through the material placed on record. The primary condition for eligibility of the exemption u/s 54G is that exemption will be available only on transfer of a capital asset used for purpose of business undertaking from urban area to a non-urban area. In the case of the assessee in the year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taking situated in an URBAN AREA, effected in course of shifting of such Industrial Undertaking to an area NON URBAN AREA. 7.3 Second requirement is that transfer has to be effected in course of, or in consequence of, shifting of the Industrial Undertaking 'Shifting' does not mean that new Industrial Undertaking established in the Non-Urban Area should use only the plant and machinery and items taken from transferred area. Exemption u/s 54G is available for purchase of new machinery or plant/ acquisition of building or land, 'construction of building, shifting of original asset as well as expenses incurred for these purposes. 7.4 This section provides for a time window of four years starting from one year prior to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Asset i.e. 'New Powder Coating Paint'. The said exemption u/s 54G was allowed to the appellant vide order u/s 143(3) dated 29.03.2015 as the appellant had shifted its Industrial Unit from Aishbagh, Lucknow (URBAN AREA) to G-18, UPSIDC Industrial Area, Chinhat Deva Road, Lucknow (NON-URBAN AREA). The relevant portion of assessment order for A.Y. 2012-13 dated 29.03.2015 is reproduced in Para 7 of the order of the appellant for A.Y. 2013-14. 8.3 A.Y. 2013-14-(Exemption u/s 54G claimed by appellant and not allowed by the A.O.) a. The appellant stated that the asset at G-18, UPSIDC Industrial Area, Chinhat Deva Road, Lucknow (NON-URBAN AREA) was not found suitable due to various reasons. This was sold to M/s Triveni Almirah fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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