Bhagwan Keshu Sakhare, Pune V. Income-tax Officer, Ward - 2(4), Pune

ITA 1729/PUN/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9833 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 05-11-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: IS DIRECTED AGAINS T PASSED
• Keywords: Capital asset; Cost of acquisition; Capital Gains
• Section: 54B; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE VIRTUAL COURT BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO.1729/PUN/2018 / ASSESSMENT YEAR : 2014-15 BHAGWAN KESHU SAKHARE, S.NO.1/9, SWAROOP NIWAS, AT POST HINJEWADI, TALUKA MULSHI, PUNE 411 057 PAN : ARMPS3409E VS. ITO, WARD-2(4), PUNE APPELLANT RESPONDENT / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT U/S. 263 OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED `THE ACT) ON 30-07-2018 IN RELATION TO THE ASSESSMENT YEAR 2014-15. 2. THIS APPEAL IS TIME BARRED BY 5 DAYS. THE ASSESSEE HAS FILED A LETTER DATED 02-11-2018 STATING THE REASONS WHICH LED TO THE LATE FILING OF THE APPEAL. WE ARE SATISFIED WITH SUCH REASONS. THE DELAY IS CONDONED AND THE APPEAL IS ADMITTED FOR HEARING ON MERITS. ASSESSEE BY SHRI S.N. PURANIK REVENUE BY SHRI DEEPAK GARG DATE OF HEARING 01-07-2020 DATE OF PRONOUNCEMENT 01-07-2020 ITA NO.1729/PUN/2018 BHAGWAN KESHU SAKHARE 2 3. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST DENIAL OF EXEMPTION U/S 54B OF THE ACT ON A SUM OF RS.35.00 LAC. B RIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN IND IVIDUAL, WHOSE CASE WAS SELECTED FOR LIMITED SCRUTINY UNDER CASS FOR THE REASON OF DEDUCTION CLAIMED UNDER THE HEAD CAPITAL GAINS . AFTER CLAIMING DEDUCTION FOR INDEXED COST OF ACQUISITION AND TRANSFER EXPENSES, THE ASSESSEE COMPUTED LONG TERM CAPITAL GAIN AT RS.80.84 LAKHS. THE ASSESSEE CLAIMED EXEMPTION U/S.54B, INTER ALIA, FOR A SUM OF RS.45.00 LAKHS TOWARDS A PROPERTY. TH E ASSESSMENT WAS COMPLETED ALLOWING EXEMPTION U/S.54B, INTER ALIA, IN RESPECT OF THE ABOVE RS.45.00 LAKHS. EXERCISING POWE R U/S.263 OF THE ACT, THE LD. CIT OBSERVED THAT AS AGAINST EXEMPTION OF RS.45.00 LAKHS, A SUM OF RS.35.00 LAKHS WAS NEITHER DE POSITED IN THE CAPITAL GAIN DEPOSIT ACCOUNT SCHEME BEFORE THE STIPULATED DATE NOR ANOTHER PROPERTY WAS PURCHASED BEFORE THE PRES CRIBED DATE. A SHOW CAUSE NOTICE WAS ISSUED FOR WHICH THE ASSES SEE SOUGHT ADJOURNMENT, WHICH WAS DULY GRANTED. ON THE NEX T DATE ALSO, THE ASSESSEE FAILED TO PUT IN APPEARANCE, AS A RESULT OF WHICH, THE LD. CIT SET-ASIDE THE ASSESSMENT ORDER DIRECTING THE AS SESSING OFFICER TO VERIFY THE CLAIM OF THE ASSESSEE MADE U/S.54B OF THE ACT ITA NO.1729/PUN/2018 BHAGWAN KESHU SAKHARE 3 AMOUNTING TO RS.35.00 LAKHS. THE ASSESSEE IS AGGRIEVED B Y SUCH AN ORDER. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS THROUGH VIRTUAL HEAR ING AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD. THE LD. AR FAIRLY ADMITTED THAT A SUM OF RS.35.00 LAKHS WAS NEITHER DEP OSITED IN THE CAPITAL GAIN ACCOUNT SCHEME NOR WAS IT USED FOR PURC HASE OF LAND BEFORE THE PRESCRIBED DATE. SECTION 54B OF THE ACT CATEGORICALLY STATES THAT THE AMOUNT OF CAPITAL GAIN ON TRANSFER OF LAND USED FOR AGRICULTURAL PURPOSES SHOULD NOT BE CHARGED TO TAX IF A NEW LAND IS PURCHASED WITHIN A PERIOD OF THREE YEARS OR THE AMOUNT IS DEPOSITED IN A DESIGNATED CAPITAL GAIN ACCOUNT SCHEME. SINCE THE ASSESSEE FAILED TO SATISFY NONE OF THESE CONDITIONS, NO EXC EPTION CAN BE TAKEN TO THE VIEW CANVASSED BY THE LD. CIT IN THIS R EGARD. WE, THEREFORE, UPHOLD THE IMPUGNED ORDER. 5. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 01 ST JULY, 2020. SD/- SD/- (S.S. VISWANETHRA RAVI) (R.S.SY AL) JUDICIAL MEMBER VIC E PRESIDENT PUNE; DATED : 01 ST JULY, 2020 SATISH ITA NO.1729/PUN/2018 BHAGWAN KESHU SAKHARE 4 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT-2, PUNE 4. , , / DR B, ITAT, PUNE 5. / GUARD FILE / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE DATE 1. DRAFT DICTATED ON 01-07-2020 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 01-07-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *