Shri Pareshkumar Kantilal Patel, Vadodara V. The ACIT, Circle-3, Now Circle-1(3), Baroda

ITA 1921/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8587 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 29-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANIL R SHAH
• Section: 54B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENC H (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI S.S. GODARA, JUDICIAL MEMBER) ITA. NO: 1921/AHD/2015 (ASSESSMENT YEAR: 2011-12) PARESHKUMAR KANTILAL PATEL 12/1 ANANDVAN SOCIETY, NEW SAMA ROAD, VADODARA V/S THE ASSTT. COMMISSIONER OF INCOME-TAX, CIRCLE-3, (NOW ACIT, CIRCLE-1(3), BARODA (APPELLANT) (RESPONDENT) PAN: AGXPP8159J APPELLANT BY : SMT. KINJAL SHAH & ANIL R. SHAH RESPONDENT BY : SHRI SUMIT KUMAR VERMA, SR. D.R. ( )/ ORDER DATE OF HEARING : 05 -04-201 8 DATE OF PRONOUNCEMENT : 09 -04-2018 PER N.K. BILLAIYA, ACCOUNTANT MEMBER 1. THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE LD. CIT(A)-5, VADODARA DATED 04.03.2015 PERTAINING TO A.Y. 2011-1 2. ITA NO. 1921 /AHD/2015 . A.Y. 2011-12 2 2. THE ONLY GRIEVANCE OF THE ASSESSEE IS THAT THE LD. CIT(A) ERRED IN CONFIRMING ADDITION OF RS. 4,47,100/- MADE ON ACCOUNT OF DISAL LOWANCE OF ASSESSEES CLAIM U/S. 54B OF THE ACT. 3. THE ASSESSEE IS AN AGRICULTURIST WHO FILED HIS RETU RN OF INCOME ON 31.12.2011 DECLARING TOTAL INCOME AT RS. 28.25 LACS. THE TOTAL INCOME HAS BEEN SHOWN AS LONG TERM CAPITAL GAINS AND ALSO INTEREST FROM SAVI NGS BANK ACCOUNT. 4. DURING THE COURSE OF THE SCRUTINY ASSESSMENT PROCEE DINGS, THE A.O. EXAMINED THE LONG TERM CAPITAL GAINS VIS--VIS CLAIM OF DEDU CTION U/S. 54B OF THE ACT. THE A.O. FOUND THAT ONE OF THE AGRICULTURAL LAND WAS PU RCHASED BEFORE THE TRANSFER OF THE AGRICULTURAL LAND IN RESPECT OF WHICH LONG T ERM CAPITAL GAINS HAVE BEEN OFFERED TO TAX. 5. THE ASSESSEE WAS ASKED TO EXPLAIN. THE ASSESSEE STA TED THAT THE LAND SOLD AT VEMALI WAS AS PER VERBAL AGREEMENT AND THE ADVANCE MONEY OF RS. 9,50,000/- THROUGH CHEQUE WAS DEPOSITED IN THE BANK AND THE IN VESTMENT IN NEW AGRICULTURAL LAND WAS MADE OUT OF THE SAID ADVANCE, THEREFORE, THE DEDUCTION U/S.54B CANNOT BE DENIED. 6. THE EXPLANATION OF THE ASSESSEE DID NOT FIND ANY FA VOUR WITH THE A.O. WHO WAS OF THE OPINION THAT THE ASSESSEE SHOULD HAVE PURCHA SED AGRICULTURAL LAND WITHIN TWO YEARS AFTER THE DATE OF SALE AND THEREFORE BENE FIT OF SECTION 54B CANNOT BE ALLOWED. THE A.O. ACCORDINGLY DENIED THE CLAIM OF D EDUCTION U/S. 54B OF THE ACT. 7. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) B UT WITHOUT ANY SUCCESS. ITA NO. 1921 /AHD/2015 . A.Y. 2011-12 3 8. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE REITERA TED WHAT HAS BEEN STATED BEFORE THE LOWER AUTHORITIES. PER CONTRA, THE LD. D .R. STRONGLY SUPPORTED THE FINDINGS OF THE A.O. 9. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE ORD ERS OF THE AUTHORITIES BELOW. A PERUSAL OF THE BANK STATEMENT EXHIBITED AT PAGE 6 OF THE PAPER BOOK SHOWS THAT THE ASSESSEE HAS RECEIVED ADVANCE OF RS. 9.50 LACS ON 26.02.2010 AND HAS PAID RS. 4,47,100/- ON 18.03.2010 FOR PURCHASE OF NEW AGRICULTURAL LAND. AS PER THE SALE DEED EXHIBITED AT PAGES 53 TO 59 OF TH E PAPER BOOK PARTICULAR PAGE 55, WE FIND THAT THE SAID ADVANCE HAS BEEN ADJUSTED AGAINST THE TOTAL CONSIDERATION. 10. IN OUR CONSIDERED OPINION, THE ASSESSEE HAS COMPLIE D WITH THE MANDATE OF THE PROVISIONS OF SECTION 54B OF THE ACT AND THEREFORE ON THE GIVEN FACTS OF THE CASE IN HAND, THE DEDUCTION CANNOT BE DENIED TO THE ASSESSEE. WE ACCORDINGLY DIRECT THE A.O. TO ALLOW THE CLAIM OF DEDUCTION U/S . 54B OF THE ACT. 11. APPEAL FILED BY THE ASSESSEE IS ACCORDINGLY ALLOWED . ORDER PRONOUNCED IN OPEN COURT ON 09 - 04- 20 18 SD/- SD/- (S. S.GODARA) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER AHMEDABAD: DATED 09/04/2018 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS)