DHARAM NATH S/O SH. KARAM CHAND,YAMUNANAGAR V. ITO, WARD-1, YAMUNANAGAR

ITA 280/CHANDI/2024

AI Insights

This case involves an appeal by Dharam Nath against the order of the Ld. CIT(A)/NFAC, Delhi, which pertained to the Assessment Year 2007-08. The primary issue was the assessment of Long Term Capital Gain (LTCG) on the sale of land, which the AO taxed under sections 143(3) r.w.s 147 of the Income Tax Act. The assessee contested the non-allowance of certain deductions and exemptions claimed under sections 54B and 54F, citing a lack of opportunity to provide necessary proofs during the assessment proceedings. The CIT(A) dismissed the appeal without specific findings on these claims. The Income Tax Appellate Tribunal (ITAT) decided to set aside the matter to the AO for a fresh examination of the Section 54F claim, acknowledging the assessee's submission of a valuation report post the initial assessment order.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 35551 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2007-2008
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Keywords: Capital asset; Cost of acquisition; Valuation report
• Section: 143(3); 54B; 54F; 2(14)

Judgement Text

"आयकर अपील य अ धकरण,च\u000fडीगढ़ \u0013यायपीठ “एस.एम.सी” , च\u000fडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCHES, “SMC” CHANDIGARH HEARING THROUGH: PHYSICAL MODE \u001aी \u001bव म संह यादव, लेखा सद$य BEFORE: SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ ITA No. 280/CHD/2024 \u000eनधा\u0012रण वष\u0012 / Assessment Year : 2007-08 Dharam Nath S/o Shri Karam Chand, Vill: Jarodi, Tehsil Jagadhri Yamunanagar बनाम The ITO Yamunanagar, Haryana \u0018थायी लेखा सं./PAN NO:AXQPN6044E अपीलाथ /Appellant यथ /Respondent \u000eनधा\u0012 रती क! ओर से/Assessee by : None राज\u0018व क! ओर से/ Revenue by : Shri Vivek Vardhan, JCIT सुनवाई क! तार&ख/Date of Hearing : 26/12/2024 उदघोषणा क! तार&ख/Date of Pronouncement : 31.12.2024 आदेश/Order PER VIKRAM SINGH YADAV, AM This is an appeal filed by the Assessee against the order of the Ld. CIT(A)/NFAC, Delhi dt. 24/05/2022 pertaining to Assessment Year 2007-08. 2. Briefly the facts of the case are that the assessment in this case was completed under section 143(3) r.w.s 147 of the Act vide order dt. 12/03/2015 wherein the AO brought to tax Long Term Capital Gain (LTCG) on sale of land amounting to Rs. 12,95,080/-. As per AO, the land sold by the assessee is 2 covered within the ambit of capital asset as per Section 2(14) as distance of land sold by the assessee in Village Jaroda / Jarodi falls within 8 Kilometers from the Municipal Limit of Jagadhri and thereafter considering the assessee’s share of land, being 1/4th share of land and corresponding sale consideration of Rs. 53,88,282/-, index cost acquisition as on 01/04/1981 amounting to Rs. 1,00,548/- and after allowing exemption under section 54B of the Act amounting to Rs. 39,92,650/-, the LTCG were determined at Rs. 12,95,084/- however as far as the assessee’s claim of commission payment of Rs. 55,000/- on purchase of agricultural land and Rs. 50,000/- on sale of agricultural land, the same were not allowed in absence of necessary proof. Further the assessee’s claim of exemption under section 54F amounting to Rs. 5,50,000/- on account of construction of residential house was not allowed in absence of necessary proof of such construction and the copy of valuation report, affidavit etc. 3. Being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A) wherein it was submitted that the AO did not give him reasonable opportunity to provide proof of investment under Section 54F, addition and cost of acquisition and other expenses and therefore the necessary opportunity may be provided to the assessee. It was further submitted that during the course of assessment proceedings, the assessee filed copy of the sale deed, copy of the purchase deed of new agricultural land purchased on 23/02/2015. Thereafter, the AO called for valuation of the residential house construction in respect of which the assessee has claimed exemption under section 54F of the Act, the assessee thereafter applied for the valuation report from a registered valuer, and visited the office of the AO on 12/03/2015 with the Valuation Report and documentary proof and at that time, he came to know that the AO has already passed the assessment order under section 143(3) r.w.s 147 of the Act. 4. The submissions so filed by the assessee were taken on record and referred in the impugned order but no specific finding has been recorded by 3 the ld CIT(A) and the appeal so filed by the assessee was dismissed by the Ld. CIT(A). Against the said findings and the direction the assessee is in appeal before us. 5. During the course of hearing, none appeared on behalf of the assessee nor was any adjournment application filed, however considering the facts and circumstances of the case, it was decided that no useful purpose would be served in adjourning the matter any further and it was decided to examine the matter based on material available on the record. 6. After hearing the ld DR and pursuing the material available on record, I find that the assessee deserve one more opportunity especially where the valuation report in support of claim of deduction u/s 54F as called for by the AO has been obtained by the assessee. The matter is accordingly set-aside to the file of the AO to examine the claim of the assessee u/s 54F afresh as per law after taking into consideration the valuation report and submissions/explanations as may be called/ submitted by the assessee where so advised. 7. In the result, the appeal of the assessee is allowed for statistical purposes. (Order pronounced in the open Court on 31.12.2024. Sd/- \u001bव म संह यादव (VIKRAM SINGH YADAV) लेखा सद$य / ACCOUNTANT MEMBER AG आदेश क! \u000eत,ल-प अ.े-षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 4 3. आयकर आयु/त/ CIT 4. -वभागीय \u000eत\u000eन2ध, आयकर अपील&य आ2धकरण, च4डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड\u0012 फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "