ACIT, Jaipur V. MANOJ BAHAL, Jaipur

ITA 147/JPR/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5459 (ITAT-JAIPUR)
• Duration Of Justice: 3 year(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 06-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS NEENA JEPH
• Keywords: Sale consideration of property below Jantri Value
• Section: 143(3); 50C; 54F; 147; 54

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VH-VKJ-EHUK] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF; D LNL; DS LE{K BEFORE: SHRI T.R.MEENA, AM & SHRI LALIET KUMAR, JM VK;DJ VIHY LA -@ ITA NO. 147/JP/2013 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2007-08 ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, JAIPUR. CUKE VS. MANOJ BAHAL, 606, ADARSH NAGAR, NEAR BEES DUKAN, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO. ACGPB 4994 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : MRS. NEENA JEPH (JCIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : NONE LQUOKBZ DH RKJH[K@ DATE OF HEARING : 16/12/2015. MN?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 12/02/2016. VKNS'K@ ORDER PER T.R. MEENA, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 27/11/2012 OF THE LEARNED C.I.T.(A)(CENTRAL), JAIPUR FOR A.Y. 2007-08. THE SOLE GROUND OF APPEAL IS AS UNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD CIT(A), CENTRAL, JAIPUR HAS ERRED IN HOLDING THAT DEDUCTION U/S 54F IS ALLOWABLE TO THE ASSESSEE 2 ITA NO. 147/JP/2013 ACIT VS MANOJ BAHAL AGAINST THE LONG TERM CAPITAL GAINS ACCRUED TO THE ASSESSEE AND THUS DELETING THE ADDITION OF RS. 1,11,79,981/-. 2. IN THIS CASE, THE ORIGINAL ASSESSMENT WAS COMPLET ED ON 30/11/2009 U/S 143(3) OF THE INCOME TAX ACT, 1961 (I N SHORT THE ACT) AT RS. 11,87,000/-. THE LD ASSESSING OFFICER REOPEN ED THE CASE U/S 147 OF THE ACT AFTER RECORDING THE REASONS ON THE GROUN D THAT THE ASSESSEE HAD SHOWN LONG TERM CAPITAL GAIN OF RS. 1,07,44,231 ON SALE OF LAND, WHICH WAS VALUED BY THE SUB-REGISTRAR AT RS. 1,14,35, 750/-. ACCORDINGLY, LONG TERM CAPITAL GAIN WAS CALCULATED A T RS. 1,11,79,981/-, THUS LONG TERM CAPITAL WAS UNDER ASSESSED BY RS. 4,3 5,750/-. FURTHER THE ASSESSEE HAD CLAIMED EXEMPTION U/S 54F OF THE A CT ON ACCOUNT OF INVESTMENT IN HOUSE PROPERTY AT RS. 1.20 CRORES AND NO CAPITAL GAIN WAS PAID. ON VERIFICATION OF DETAILS, IT WAS FOUND BY THE ASSESSING OFFICER THAT THE ASSESSEE HAD DEPOSITED RS. 75,00,0 00/- IN CAPITAL GAIN ACCOUNT AND RS. 45,00,000/- WAS USED FOR PURCHASE OF AGRICULTURAL LAND. THE INVESTMENT MADE IN AGRICULTURAL LAND IS NO T QUALIFIED FOR DEDUCTION U/S 54F. THE CASE WAS SCRUTINIZED BY THE AS SESSING OFFICER AND FINALLY HE HAS CALCULATED LONG TERM CAPITAL GAI N AT RS. 1,11,79,981/-. 3 ITA NO. 147/JP/2013 ACIT VS MANOJ BAHAL 3. BEING AGGRIEVED BY THE ORDER OF THE ASSESSING OF FICER, THE ASSESSEE CARRIED THE MATTER BEFORE THE LD CIT(A), WHO HAD ALLOWED THE APPEAL BY OBSERVING THAT THE APPELLANT HAD SOLD ONE PLOT OF LAND FOR TOTAL CONSIDERATION OF RS. 2,52,76,000/- ALONGWITH O THER CO-OWNERS AND THE SHARE OF THE APPELLANT IN THIS PLOT WAS FOR RS. 1.10 CRORES. THE REGISTRATION AUTHORITY VALUED THE COST OF THE LAND (SHARE OF THE APPELLANT) AS PER PROVISIONS OF SEC 50C FOR RS. 1,1 4,35,750/-. THE APPELLANT SUBSEQUENTLY PURCHASED ONE AGRICULTURAL P LOT ON 12/7/2007 MEASURING TWO BIGHAS ONE BISWA AT VILLAGE JAISINGHPUR A KHOR, DISTRICT JAIPUR FOR RS. 45,00,000/-. THE AREA IS OTHERWISE STA TED TO BE IN MUNICIPAL LIMITS. HOWEVER, THERE IS NO DISPUTE THAT SUCH PLOT IS OF AGRICULTURAL LAND. THE APPELLANT ALSO DEPOSITED RS. 75 LACS IN CAPITAL GAIN ACCOUNT IN BANK OF BARODA WITHIN THE STIPULATED AND THE AMOUNT WAS WITHDRAWN/UTILIZED FOR CONSTRUCTION OF HOUSE ON T HE PLOT PURCHASED EARLIER. THE APPELLANT ACCORDINGLY CLAIMED TO HAVE I NVESTED RS. 1.20 CRORES U/S 54F OF THE ACT. THE LD CIT(A) FURTHER ANA LYSED SECTION 54F OF THE ACT ON PAGE 5 AND 6 OF HIS ORDER. HE HAS FUR THER HELD THAT THE ASSESSEE HAD CONSTRUCTED A RESIDENTIAL HOUSE WITHIN STIPULATED PERIOD FROM THE DATE OF TRANSFER OF ORIGINAL ASSETS AND TH ERE WAS NO SPECIFIC CONDITION IN THE ACT THAT RESIDENTIAL HOUSE CONSTRU CTED ON THE 4 ITA NO. 147/JP/2013 ACIT VS MANOJ BAHAL AGRICULTURAL LAND WILL NOT BE ELIGIBLE FOR SUCH DEDU CTION. HE FURTHER RELIED ON THE DECISION OF HONBLE ITAT, JAIPUR BENCH IN THE CASE OF ACIT VS OM PRAKASH GOYAL IN ITA NO. 647/JP/2011 WHERE IN IT HAS BEEN HELD THAT HOUSE CONSTRUCTED ON AGRICULTURAL LA ND IS QUALIFIED FOR DEDUCTION U/S 54F OF THE ACT. HE FURTHER RELIED ON THE DECISION OF ITAT, JAIPUR BENCH IN THE CASE OF SHYAM SUNDER MAKHIJA VS . ITO 38 ITD 125 WHEREIN IDENTICAL ISSUE HAS BEEN DECIDED BY THE HON BLE BENCH. THEREFORE, HE ALLOWED THE DEDUCTION U/S 54 OF THE ACT ON INVESTMENT O RS. 1.20 CRORES. 4. NOW THE REVENUE IS IN APPEAL BEFORE US. THE LD DR HAS VEHEMENTLY SUPPORTED THE ORDER OF THE LD ASSESSING OFFICER. AT THE OUTSET, NOBODY IS APPEARED FROM THE SIDE OF ASSESSE E. 5. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IT IS UNDISPUTED FACT THAT THE ASSESSEE HAD CONSTRUCTED HOUSE ON AGRICULTURAL LAND WITHIN STIPULATED TIME AND MADE INVESTMENT OF RS. 1.20 CRO RES. THE LD CIT(A) HAS THOROUGHLY ANALYSED SECTION 54F AS WELL AS VARIO US DECISIONS OF COORDINATE BENCH OF ITAT, JAIPUR BENCH. BY RESPECTFU LLY FOLLOWING THE 5 ITA NO. 147/JP/2013 ACIT VS MANOJ BAHAL DECISION OF THE COORDINATE BENCH, WE UPHOLD THE ORDE R OF THE LD CIT(A). 6. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 12/02/2016. SD/- SD/- YFYR DQEKJ VH-VKJ-EHUK (LALIET KUMAR) (T.R. MEENA) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 12 TH FEBRUARY, 2016. RANJAN* VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- THE ACIT, CENTRAL CIRCLE-2, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- SHRI MANOJ BAHAL, JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO.147/JP/2013) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR