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TMI Blog2025 (2) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT(A) has erred in sustaining the disallowance of claim of exemption u/s 54B of the Act amounting to Rs. 17.31,800/-made on account of investment in new agriculture land. The disallowance so made is bad in law and bad on fact. b. The Id. CIT(A) has further erred in not allowing the benefit of deduction of Rs. 60,00,000/- deposited in long term capital account. The disallowance of such deduction claimed is bad in law and bad on facts. c. The Id. CIT(A) has also failed to appreciate that the appellant had already paid tax on amount deposited and addition made during the year had resulted into double addition. 2. The Ld. CIT has erred in charging interest under section 234B and 234C of the Act. 3. The appellant craves liberty to add, alter, amend or vary from the above the above grounds of appeal at or before the time of hearing." 3. The brief fact of the case shows that assessee is an individual, who filed his return of income on 22.09.2013 at a total income of Rs. 8,14,270/-, which was selected for scrutiny and notice u/s. 143(2) of the Act was issued on 03.09.2014 which culminated into an assessment of total income of Rs. 85,46,070/-passed u/s u/s. 143(3) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... offered for taxation for A.Y. 2014-15 resulting into the exemption of balance sum of Rs. 17,31,800/-. The assessee submitted that the land sold by the assessee for Rs. 80,00,000/- was agricultural land. To support its case, assessee submitted that agricultural land was partly used for the purpose of growing Guar crop on the basis of report of Tehsildar, Bikaner, dated 14.09.2015 obtained by the learned Assessing Officer. As the land was used for growing Guarcrop, the claim of the assessee was that he has sold agricultural land. To support further, the assessee referred to the sale deed wherein it was specifically mentioned that the impugned land sold is agricultural land and further the report of Patwari also shows that there is an agricultural cultivation of Guar crop. The Guar crop cultivation was for Samvat Year 2067 and 2068 the F.Y. 2010-11 and 2011-12. As per the girdawari of halka Patwari clearly shows that 0.80 hectares of the land for Samvat Year 2067 and .20 hectors of the land for Samvat Year 2068 is used for agricultural purposes. The assessee also submitted that on the balance land the assessee has made fruit plantation of Anar by submitting the copies of the bill of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ground no 2 was pressed. The learned Authorized Representative (AR) submitted paper book containing 62 pages wherein he submitted that the assessee has sold an agricultural land, assessee has made partly investment in agricultural land and partial amount is deposited in terms of provisions of Section 54B(2) of the Act. To show that the land sold is used for agricultural purposes, the assessee has produced that in earlier years Guarcrops have arisen and also shown the income from agricultural operation in the earlier assessment year. The assessee has also shown fruit plantation bill, which could not result into agricultural produce due to adverse weather. Obtaining the Anar plantation bill from unregistered dealer cannot go against the assessee because assessee has purchased plants of Anar which could not have any sales tax impact. Further, without examining the persons from whom the Anar plants are purchased the learned Assessing Officer has disbelieved it. Even the report of halka Patwari obtained by ld. AO clearly shows that the land was used for agricultural purposes and according to the provisions of Section 54B of the Act it is not necessary that every inch of the land should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to tax. It further provides that if the Capital Gain earned cannot be utilized prior to the due date of filing of the return of income, same can be deposited in capital gain scheme and the return of income if accompanied by the proof, Capital Gain shall not be charged to tax to that extent. If subsequently it is found that the amount so deposited is not used for the purposes of acquisition of new agricultural land, then the amount would be charged to tax in the hands of the assessee as long term capital gain in which the period of two years expire. 20. In this case, it is not in dispute that the assessee has acquired a new agricultural land for Rs. 17,38,700/- and also deposited Rs. 60.00 lacs with the Capital Gain Account Scheme. 21. The dispute here is whether the land sold by the assessee on which capital gain arose is an agricultural land or not. To support the claim of the assessee that is agricultural land, the assessee has produced the report of patwari that assessee has grown Guarcrop for immediately two years preceding the date of transfer. The assessee has also stated that he tried to grow the fruit plantation by showing the purchase of plants. The learned Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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