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TMI Blog2018 (7) TMI 2256X X X X Extracts X X X X X X X X Extracts X X X X ..... to 4, assessee assails disallowance of a claim made by her u/s.54F of the Income Tax Act, 1961 (in short 'the Act'') on long term capital gains. Through its grounds 5 & 6, assessee assails the order of the ld. Commissioner of Income Tax (Appeals) in so far as he declined to admit her claim that the land sold which gave rise to the gains was an agricultural one and hence outside the ambit of levy of capital gains tax. 3. Facts apropos are that assessee had filed her return for the impugned assessment year disclosing income of D1,27,63,670/-. During the course of assessment proceedings, it was noted by the ld. Assessing Officer that assessee had claimed deduction of D2,40,00,000/- under Section 54F of the Act from the gains arising out of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has stated to have paid Rs. 632/- for the property tax for the period 2014-15 and it is not reasonable that for the building measuring 3398 Sq.ft, only an amount of Rs. 632/- is determined as property tax''. 4. Ld. Assessing Officer thereafter deputed his Inspector for an enquiry. The enquiry report ran as under:- ''During the course of Inspection on 23.02.2015, the undersigned has met one Mr. Ramamoorthy, Manager, Suriyadevi Complex, who has located and identified the land purchased by the assessee Mrs. Majeeda Shahida Kamaludin Begum. It has been noticed that the landed property purchased by the Assessee i.e, land to the extent of 8280 Sq.ft. as per Patta New Survey No.44/8B2 has no building structure as claimed by the assessee vide b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... constructed is a "house". Therefore, one small room measuring 70 to 80 sq.ft. existed in the land could not be considered as house. The pictures shown above are the clear indicators to arrive at a conclusion that the assessee has not constructed any building within the time limit specified in the section''. He thus denied the deduction claimed by the assessee u/s.54F of the Act and completed the assessment. 5. Aggrieved, assessee moved in appeal before ld. Commissioner of Income Tax (Appeals). Apart from assailing the disallowance of claim made u/s.54F of the Act, assessee also preferred a fresh claim stating that the asset sold, which gave to the gains was not a capital asset since it was an agricultural land. As per the assessee, before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer. Therefore additional ground of appeal made by the appellant is dismissed''. Ld. Commissioner of Income Tax (Appeals) also upheld the order of the ld. Assessing Officer, denying the claim of deduction made u/s.54F of the Act. 6. Now before us, ld. Authorised Representative strongly assailing the order of the ld. Commissioner of Income Tax (Appeals) submitted that the question whether land sold was agricultural or not was germane for deciding the exigibility to capital gains tax. According to him, though the assessee did not prefer such a claim before the ld. Assessing Officer, when there were irrefutable documents to show that the land sold was agricultural, ld. Commissioner of Income Tax (Appeals) ought have adjudicated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence, due to assessee's failure to produce the evidence before the ld. Assessing Officer . However, a reading of the assessment order clearly show that assessee's representative had mentioned loss of documents provided by the client to him in the Chennai floods. Letter dated 29.12.2015, filed by the ld. Authorised Representative before ld. Assessing Officer which is relevant and it is reproduced hereunder:- ''We are in receipt of your notice dt.l1.12.2015 and noted the contents and in that connection, we wish to state as follows: We have received documents/records from the client, due to recent floods our office is worst affected. We are recovering all documents/records using room heaters/ hot air blowers etc. We are facing uphill ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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