9911796707
TMI Blog2024 (2) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... d the fact and stated that neither any inquiry was conducted by the AO regarding user of land for agricultural purposes two years preceding the date of sale nor any documents filed by the assessee to the AO demonstrating the same. In the light of the same, we find no infirmity in the order of the CIT, finding the AO to have erroneously allowed the assessee s claim of exemption under section 54B of the Act, without even conducting basic inquiry regarding fulfillment of conditions prescribed by the section for being eligible to exemption under the said section. Appeal of the assessee is dismissed. - Smt. Annapurna Gupta, Accountant Member And Shri Siddhartha Nautiyal, Judicial Member For the Assessee : Shri Hemant Suthar, AR For the Revenue : Shri Akhilendra Pratap Yadaw, CIT-DR ORDER PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER Present appeal has been filed by the assessee against order passed by the ld. Pr. Commissioner of Income Tax-1, Vadodara [hereinafter referred to as Ld.Pr.CIT ]dated 24.2.2020 passed by invoking provisions of section 263 of the Income Tax Act, 1961 [hereinafter referred to as the Act for short]for the Asst. Year 2015- 16. 2. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The assessee has challenged order raising the following grounds before us. 1. The Ld. Pr. CIT - 1, Vadodara has erred in law and in facts in holding that the assessment order passed by the Ld. A.O. u/s. 143(3) dated 22.06.2017 is erroneous and prejudicial to the interest of the revenue so as to justify the invocation of powers u/s. 263 and directing to revise the assessment order to verify and consider the allowance of deduction u/s 54B. The order of the Pr. CIT being erroneous in law and in facts is prayed to be cancelled / revoked. 2. That having regard to the facts and circumstances of the case, Pr. CIT - 1, Vadodara has erred in law and on facts in assuming jurisdiction in passing the order u/s 263, more so when the assessment order passed under section 143(3) dated 22.06.2017 is neither erroneous nor prejudicial to the interest of Revenue. 3. That having regard to the facts and circumstances of the case, Pr. CIT has erred in setting aside the assessment order passed under section 143(3) of the Act by the Assessing Officer on the ground that the enquiries and verification which should have been made has not been conducted in terms of Explanation -2 to Sec. 26 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were not eligible for exemption under section 54B of the Act, which, however was allowed by the AO. 8. This fact mentions at para-2 of the ld.Pr.CIT s order as under: 2. This assessment order u/s. 143(3) of the I-T Act, passed by the Assessing Officer on 22.06.2017 for A.Y. 2015-16, is erroneous as well as prejudicial to the interest of revenue on account of the following: On verification of records, it is seen that during the year under consideration assessee had sold immovable property and claimed exemption u/s. 54B of the Act however, the same is not allowable as the land in question was converted from agricultural land to non - agricultural land on 07/05/2012 and the same was sold vide registered sale deed dated 21/04/2014, thus the basic conditions for claiming exemption u/s. 54B of the Act have not been fulfilled by the assessee in the instant case. Therefore, the grant of exemption u/s. 54B of the Act is not found allowable to the assessee. 9. The ld.Pr.CIT accordingly issued show cause notice to the assessee, and after considering the submissions filed by the assessee in this regard, he held the assessment order passed to be erroneous causing prejudice to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee for furnishing the return of income under subsection (1) of section 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset: Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase of the new asset within the period specified in sub-section (1), then, (i) the amount not so utilised shall be charged under section 45 as the income of the previous year in which the period of two years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid. 11. As noted from the same, the essential conditions to be fulfilled to qualify for exemption of capital gains under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer to ascertain as to whether land purchased by the assessee was agricultural land and whether the same was purchased from the sale proceeds of sale of agricultural land. Thus, in the given facts of the case, it can be undoubtedly said that the impugned assessment order was erroneous and prejudicial to the interest of revenue. Accordingly, the Assessing Officer is directed to decide this issue afresh keeping in view the provision of Section 54B of the Act and also after giving the assessee an opportunity of being heard. 14. The ld.counsel for the assessee was asked at bar whether this fact noted by the ld.Pr.CIT was correct , that neither any inquiry was made by the AO regarding fulfillment of the basic conditions for eligibility to claim exemption under section 54B of the Act nor any documents were placed by the assessee before the AO establishing the same. To this, the ld.counsel for the assessee categorically affirmed the fact and stated that neither any inquiry was conducted by the AO regarding user of land for agricultural purposes two years preceding the date of sale nor any documents filed by the assessee to the AO demonstrating the same. 15. In the light ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
