9911796707
TMI Blog2024 (12) TMI 1163X X X X Extracts X X X X X X X X Extracts X X X X ..... ral land and received Rs. 4,31,25,000/- by selling agricultural land and sufficient fund. Assessee deserves benefit of section 54F of the Act, therefore, the findings of learned CIT(A) deserves to be set aside. Disallowance of exemption u/s 54B - Details of purchase of land by assessee for Rs. 3,08,33,650/- is at page 24 of the paper book. Sale deed agreements executed by assessee for purchase of agricultural land. The assessee claims to be illiterate and was not aware of the income tax laws and was suffering from serious diseases since 2012. Before learned AO assessee submitted that land was purchased in the name of wife to save stamp duty. In view of the above material facts and well settled principle of law, the assessee having purchased agricultural land was eligible for deduction under section 54B of the Act. Therefore, the findings of learned CIT(A) denying benefit of deduction under section 54F of the Act, is set aside. Unexplained cash credit on account of unsecured loan received by assessee from his brother Shri Brahm Singh, assessee filed copy of affidavit of Brahm Singh and cash flow statement - Agreement of sale dated 26.12.2012. In view of the above, said affidavit, ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 29.11.2017 served on assessee on 04.12.2017. 3. During the assessment proceedings, after taking into consideration various replies, show-cause notice was issued on 18.12.2017. In compliance with show-cause notice, assessee filed reply dated 22.12.2017. The assessee vide letter dated 29.01.2016 gave details of the salaries. On completion of assessment proceedings, additions of Rs. 1,14,39,350/-, Rs. 3,08,33,650/- and Rs. 40,00,000/- were made by the Assessing Officer. 4. Aggrieved by the order of learned Assessing Officer, Appellant/assessee preferred appeal before the learned CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. Being aggrieved by the order of learned CIT(A), appellant/assessee preferred present appeal before the ITAT. 6. Learned Authorized Representative for the appellant/assessee submitted that ground nos.1 2 were not pressed by the assessee. 7. Learned Authorized Representative for the appellant/assessee submitted that learned CIT(A) has erred in law and on facts in not allowing the benefit of deduction under section 54F of the Act amounting to Rs. 1,14,39,350/- by recording incorrect facts and findings and without observing the principles of natural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the above facts. PB 79-89 is the copy of detailed reply filed by assessee before Ld. AO submitting that the residential house was constructed by directly employing the labours and various thekedars who supplied material for construction. PB 89-91 is the copy of reply dated 13.11.2017 filed by assessee before Ld. AO submitting that he has constructed the house. PB 109-112 is the copy of written submissions dated 25.10.2018 filed before Ld. CIT(A). 9. Learned Authorized Representative for the appellant/assessee submitted that learned CIT(A) erred in not allowing benefit of deduction under section 54B of the Act amounting to Rs. 3,08,33,650/- 9.1 Ld. CIT(A) has held that agricultural land has been purchased by the appellant in the name of the wife and hence, in view of the jurisdictional High Court's decisions in the case of Kamal Kant Kambojh 84 taxmann.com 541 and the decisions relied upon by the Ld. AO the deduction was not to be allowed. 9.2 Assessee's case is that assessee purchased agricultural land within 2 years and therefore was entitled for exemption u/s 54B. The evidence in this regard are as under: PB 112 is the submission before Ld. CIT(A) in which assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , is eligible for deduction u/s 54B of the Act. 10. Learned Authorized Representative for the assessee/appellant submitted that learned CIT(A) has erred in law and on facts in confirming the action of Learned AO in making addition of Rs. 40,00,000/- on account of alleged unsecured loan. 10.1 The case of assessee is that assessee has five brothers and all the purchase of land is shared by all of them equally. At times any one of them make the payment for purchase of land on behalf of others and later on the payments are squared off by mutual agreement between the brothers and this is exact transaction that was undertaken between assessee and his brother, Shri Brahm Singh. He purchased a land and paid the assessee's share of Rs. 40,00,000/- by withdrawing cash from his own bank account which was shown by assessee as unsecured loan in the statement of affairs as on 31.03.2013. Later on, assessee made payment on behalf of Shri Brahm Singh for purchase of another land and thus, squared of the transaction. The evidence in this regard are as under: PB 102-103 is the copy of affidavit of Sh. Brahm Singh wherein he has stated on oath that he has paid a sum of Rs. 40,00,000/- on behalf o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted within the municipal limits of Gurgaon. 12.2 The claim being eligible for deduction under section 54F of the Act was rejected because there is no evidence of construction of house except a valuation report, no evidence regarding the actual period during which the construction was made, no evidence regarding the source from which the construction expenses were incurred, the land on which the construction of residential house was claimed to have been made was claimed to be lal dora, there is no evidence to show investment in construction of house and as pointed out by the AO in the assessment order the appellant has originally claimed that the sale consideration was used towards construction of house in the name of his son. 12.3 The valuation report at page 81 of the paper book mentions valuation of the house property constructed by assessee which shows that construction was done between the period of Jan, 2013 to July, 2015 with value of Rs. 1,25,20,000/-. Aksh, Sizra and Jamabandi of the ancestral land showing the ownership of assessee are at page nos. 92-94 of the paper book. Copy of Certificate issued by Councillor, Gurgaon at page 95 of the paper book, Copy of cash flow stat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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