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TMI Blog2024 (12) TMI 1163X X X X Extracts X X X X X X X X Extracts X X X X ..... is return of income for A.Y. 2013-14. Proceedings under section 147 of the Act were initiated after recording the reasons, in writing and taking necessary approval from the Joint Commissioner of Income Tax, Range-3, Gurgaon. Notice under section 148 of the Act for A.Y. 2013-14 was issued on 24.01.2017. In compliance with the notice, assessee filed return of income on 29.06.2017 declaring income of Rs. 3,82,020/- and claimed deduction under section 54F of the Act amounting to Rs. 1,14,39,350/- and under section 54B of the Act amounting to Rs. 3,08,33,650/-. On receiving the Income-tax Return, in response to the notice under section 148 of the Act, notice under section 143(2) of the Act was issued on 07.07.2017. Copy of reasons were provided to assessee vide order sheet entry dated 07.07.2017. The assessee represented by Shri L. C. Yadav, Advocate on 24.11.2017, raised objections to recording of reasons which was dealt with vide office order 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 date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t assessee is a resident of village Mohammed Pur. Gurgaon and he has constructed a house in the year 2013 to 2015 in the said village by selling his agricultural land. PB 22-23 is the copy of cash flow statement of assessee which would show that cash was withdrawn from bank at regular interval of time and was invested for construction of house property. PB 3 is the copy of reply filed on 07.07.2017 by assessee before Ld. AO submitting that he has constructed a residential house in village on his ancestral land for a sum of Rs. 1,25,20,000/- and the house was completed within the period of three years from the date of sale of agricultural land. The house was constructed in Lal Dora of the village Mohammedpur Jharsa, Gurgaon for his and his family's residence. The construction of the house in this village does not require any permission from Municipal Corporation. PB 78 is the copy of reply dated 11.10.2017 filed by assessee before Ld. AO again submitting 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed that :- "Undisputedly, the purchased land is being used by the assessee only for agricultural purpose and merely because in the sale deed his only son was also shown as co-owner, the ITAT has rightly come to the conclusion that it does not make any difference because the purchased land is being used by the assessee for agricultural purposes. It is not the case of the revenue that the said land is being used exclusively by his son. In our view, a pure finding of fact has been recorded by the ITAT which does not require any interference in this appeal." * Similar is position in Laxmi Naryan vs. CIT 402 ITR 117, High Court of Rajasthan, * CIT vs. Kamal Wahal, (2013) 351 ITR 4, High Court of Delhi, * CIT vs. Natarajan, (2006) 287 ITR 271, High Court of Madras, * CIT vs. Ravinder Kumar Arora, (2011) 52 sot 201, ITAT Delhi Bench and * Sh. Rajkumar Mandani vs. DCIT, ITA No. 835/Hyd/2018 dated 20.11.2018, ITAT Delhi Bench. 9.4 So, it is clear that assessee has purchased agricultural land and therefore, 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 fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of huge value but had failed to file the Income-tax Return. Reliance was placed on the order of learned CIT(A). 12. From examination of record in light of aforesaid rival contentions, it is crystal clear that learned CIT(A) at para no.4.4 observed that the learned AO had specific information with regard to sale of land by assessee along with his brothers and receiving sale consideration of Rs. 4,31,25,000/-, received pension of Rs. 2,51,820/- and interest of Rs. 48,526/- and observed that no income from the sale transaction was shown in the return of income by the assessee. Therefore, assessment in the case was reopened. The learned CIT(A) in para no.5.3 observed that assessee has raised contentions against following additions under the head capital gains: i. The land under transfer was not a capital asset. ii. The appellant was eligible for deduction under section 54F of the Act. iii. The appellant was eligible for deduction under section 54B of the Act. 12.1 The land under transfer was not a capital asset as the land was situated within the municipal limits of Gurgaon. 12.2 The claim being eligible for deduction under section 54F of the Act was rejected because there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that: "Undisputedly, the purchased land is being used by the assessee only for agricultural purpose and merely because in the sale deed his only son was also shown as co-owner, the ITAT has rightly come to the conclusion that it does not make any difference because the purchased land is being used by the assessee for agricultural purposes. It is not the case of the revenue that the said land is being used exclusively by his son. In our view, a pure finding of fact has been recorded by the ITAT which does not require any interference in this appeal." 12.5 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. 12.6 Regarding unexplained cash credit of Rs. 40,00,000/- on account of unsecured loan received by assessee from his brother Shri Brahm Singh, assessee filed copy of affidavit of Brahm Singh on pages 102-103 of the paper book and cash flow statement at page 22 of the paper book. Agreement of sale dated 26.12.2012 is at page 72 of the paper b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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