Shri Ram Niwas Singh, JODHPUR V. ITO, BIKANER

ITA 22/JODH/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5206 (ITAT-JODHPUR)
• Duration Of Justice: 1 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 15-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L MOURYA
• Keywords: Revised return
• Section: 54B; 54F

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI N.S. SAINI , HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 2 2 / JODH /201 5 (ASST. YEAR : 20 11 - 12 ) SHRI RAM NIWAS SINGH, S/O SHRI BHAGWAN SINGH, UDAIRAMSAR, BIKANER . VS. ITO, WARD - 2(2), BIKANER. PAN NO. AVKPR 9391 J (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI RAJENDRA JAIN ADV. DEPARTMENT BY : S HRI S.L. MOURYA - DR DATE OF HEARING : 1 4 / 0 3 /201 6 . DATE OF PRONOUNCEMENT : 1 4 / 03 /201 6 . O R D E R PER N.S. SAINI , ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) , BIKANER , DATED 25 / 11 /201 4 . 2. THE ONLY GROUND TAKEN IN THIS APPEAL IS THAT THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN UPHOLDING THE ORDER OF THE ASSESSING OFFICER IN NOT ALLOWING DEDUCTION UNDER SEC. 54B OF RS. 1,47,11,300/ - ON PURCHASE OF AGRICULTURAL LAND IN THE NAME OF HIS WIFE S MT. KAMLESH. 3 . BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE AND HIS BROTHERS SOLD THEIR PARENTAL AGRICULTURAL LAND AND THE ASSESSEE GOT HIS HALF SHARE OF RS. 1,47,50,000/ - . T HE ASSESSEE PURCHASED A NEW AGRICULTURAL LAND IN HIS WIFES NAME BY INVESTING THE WHOLE SALE PROCEEDS AND CLAIMED 2 ITA NO. 22/JODH/2015 EXEMPTION UNDER SEC. 54B OF THE ACT. THE ASSESSING OFFICER DISALLOWED THE CLAIM TO THE ASSESSEE ON THE GROUND THAT SINCE THE LAND WAS PURCHASED IN THE NAME OF HIS WIFE, THE DEDUCTION WAS NOT ALLOWABLE TO THE ASSESSEE AND THE DEDUCTION WAS CLAIMED FOR THE FIRST TIME DURING THE COURSE OF ASSESSMENT PROCEEDINGS AND BY WAY OF A LETTER AND N OT BY FILING A REVISED RETURN. 4 . WE FIND THAT THE HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. KAMAL WAHAL (351 ITR 04) HELD TH A T FOR THE PURPOSE OF CLAIM OF DEDUCTION UNDER SEC. 54F, THE NEW RESIDENTIAL HOUSE SHOULD NOT BE PURCHASED BY THE ASSESSEE IN HIS OWN NAME NOR IT IS NECESSARY THAT IT SHOULD BE PURCHASED EXCLUSIVELY IN HIS NAME. FURTHER, THE HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. REVINDER KUMAR ARORA (342 ITR 38) HELD THAT THE ASSESSEE HAVING INVESTED THE ENTIRE AMOUNT OF LONG TERM CAPITAL GAINS IN PURCHASE OF NEW RESIDENTIAL HOUSE , WAS ENTITLED TO EXEMPTION UNDER SEC. 54F IN RESPECT OF THE ENTIRE AMOUNT , EVEN BY WAY OF A LETTER AND NOT BY FILING REVISED RETURN, THE NEW PROPERTY WAS PURCHASED IN THE JOINT NAMES OF THE ASSESSEE AND HIS WIFE. IN VIEW OF THE ABOVE DECISION OF THE HON'BLE DELHI HIGH COURT, WE SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES AND DIRECT THE ASSESSING OFFICER TO ALLOW THE DEDUCTION UNDER SEC. 54B OF THE ACT TO THE ASSESSEE. WE FIND THAT THE HON 'BLE SUPREME COURT IN THE CASE OF GOETZE (INDIA) LTD. VS. CIT [284 ITR 323 (SC)] HAS HELD THAT THE LIMITATION OF NOT ENTERTA IN ING NEW CLAIM SHALL NOT APPLY TO THE APPELLATE AUTHORITIES. THE HON'BLE BOMBAY HIGH COURT , AFTER CONSIDERING THE ABOVE DECISION IN THE CASE OF CIT VS. PRUTHVI BROKERS AND SHAREHOLDERS PVT. LTD. IN INCOME TAX APPEAL NO. 3908/2010 , ORDER DATED 21/06/2012 HAS HELD THAT THE ABOVE DECISION OF THE HON'BLE SUPREME COURT DOES NOT PROHIBIT THE CIT(A) ON DECIDING THE ALLOWABILITY OR OTHERWISE OF A NEW CLAIM MADE BY THE ASSESSEE NOT BY FILING A REVISED RETURN . I N THE INSTANT CASE , AS IT IS NOT IN DISPUTE THAT THE ENTIRE CAPITAL GAINS EARNED BY THE ASSESSEE ON SALE OF AGRICULTUR AL LAND WAS UTILIZED FOR PURCHASING NEW AG RICULTURAL LAND, THOUGH IN THE 3 ITA NO. 22/JODH/2015 NAME OF THE WIFE OF THE ASSESSEE , T HEREFORE, IN OUR CONSIDERED VIEW, COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE ALLOWED THE CLAIM OF THE ASSESSEE. HENCE, WE SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES AND ALLOW THE DEDUCTION UNDER SEC. 54B TO THE ASSESSEE. THUS, THIS GRO U ND OF APPEAL OF THE ASSESSEE IS ALLOWED . 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE HEARING ON MONDAY , THE 1 4 TH DAY OF MARCH , 201 6 AT JODHPUR . S D / - S D / - (GEORGE MATHAN) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER D ATED : 1 4 TH MARCH , 201 6 . VR/ - COPY TO: 1. THE ASSESS E E. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R . 6. GUARD FILE. BY ORDER .