Ashokkumar Mohanlal Bhandari, Nashik V. Assistant Commissioner of Income tax, Nashik

ITA 295/PUN/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0723 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 06-02-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED
• Keywords: Benefit of exemption
• Section: 54F

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER . / ITA NO.295/PUN/2017 / ASSESSMENT YEARS : 2013-14 SHRI ASHOKKUMAR MOHANLAL BHANDARI, 1, VYAPAR BHAVAN, OLD AGRA ROAD, AT POST PIMPALGAON, TAL. NIPHAD, NASHIK 422 029 PAN : ABTPB2117M VS. ACIT, CIRCLE-1, NASHIK (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PAS SED BY THE LD. CIT(A)-1, NASHIK ON 18-10-2016 IN RELATION TO THE ASSESSMENT YEAR 2013-14. 2. THE FIRST ISSUE RAISED IN THIS APPEAL IS AGAINST THE DENIAL OF PART OF EXEMPTION U/S.54F OF THE INCOME-TAX ACT, 1961 (HER EINAFTER ALSO CALLED `THE ACT). APPELLANT BY SHRI ABHAY AVCHAT RESPONDENT BY SHRI PANKAJ GARG DATE OF HEARING 26-03-2019 DATE OF PRONOUNCEMENT 28-03-2019 ITA NO. 295/PUN/2017 ASHOKKUMAR M. BHANDARI 2 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSE E TRANSFERRED CERTAIN PLOT ON 11-06-2012 WHICH RESULTED INTO LO NG TERM CAPITAL GAIN OF RS.97,76,679/-. THE ASSESSEE CLAIMED EXEMPTION U/S.54F OF THE ACT AMOUNTING TO RS.90,25,272/- ON PROPORTIONATE BASIS TOWARDS INVESTMENT OF RS.1,15,80,920/- . THE ASSESSING OFFICER (AO) OBSERVED THAT EXEMPTION U/S.54F WAS CLAIMED INTER ALIA QUA THE COST OF PLOT AMOUNTING TO RS.43,09,500/- AS PART OF CONSTRUCTION. TAKING NOTE OF THE PRESCRIPTION OF SECTION 54F PROVIDING FOR THE GRANT OF EXEMPTION ON CONSTRUCTION OF A RESIDENTIAL HOUSE WITHIN 3 YEARS FROM THE DATE OF THE TRANSFER OF ORIGINAL ASSET, THE AO HELD THAT SUCH PURCHASE OF PLOT BY THE ASSESSEE FOR RS.43,09,500/-, PRIOR TO THE DATE OF TRANSFE R OF THE ORIGINAL ASSET ON 11-06-2012, COULD NOT BE TAKEN INTO CONSIDERATION. ALLOWING EXEMPTION U/S.54F WITH REFERENCE TO THE COST OF CONSTRUCTION INCURRED BY THE ASSESSEE, THE AO REJE CTED THE CLAIM OF THE ASSESSEE FOR EXEMPTION IN RESPECT OF PURCHAS E OF PLOT AMOUNTING TO RS.43,09,500/-. FOR HOLDING SO, THE AO RELIED O N CIRCULAR NO.667, DATED 18-10-1993. WHEN THE MATTER CAME UP BEFORE THE LD. CIT(A), HE HELD THAT THE PART OF PLOT OF LAND PURCHASED BY THE ASSESSEE ONE YEAR PRIOR TO THE DATE OF TRANSFER OF THE RESIDENTIAL ASSET QUALIFIED FOR EXEMPTION U/S.54F. THE ITA NO. 295/PUN/2017 ASHOKKUMAR M. BHANDARI 3 INVESTMENT IN PLOT OF LAND PRIOR TO ONE YEAR BEFORE THE DATE OF TRANSFER OF THE ORIGINAL ASSET RESULTING INTO CAPITAL GAIN WAS HELD TO BE NOT ELIGIBLE FOR EXEMPTION. THE ASSESSEE IS AGGRIEVED BY THE ORDER PASSED BY THE LD. CIT(A) ON THIS SCORE. 4. WE HAVE HEARD BOTH THE SIDES. IT IS RELEVANT TO MENTION THA T THIS APPEAL WAS TAGGED WITH THE APPEAL OF SH. SOHANLAL MOHANLA L BHANDARI (ITA NO.294/PUN/2017), WHICH WAS ARGUED EXTENSIVE LY BY THE PARTIES. BOTH THE SIDES ARE CONSENSUS AD IDEM THAT THE FACTS AND CIRCUMSTANCES OF THIS APPEAL ARE MUTATIS MUTANDIS SIMILAR TO THAT OF SH. SOHANLAL MOHANLAL BHANDARI. WE HAVE PASSED A SEPARATE ORDER IN THE CASE OF SH. SOHANLAL MOHANLAL BHANDAR I IN FAVOUR OF THE ASSESSEE ON THIS ISSUE. FOLLOWING OUR VIEW TAK EN IN THE CASE OF SH. SOHANLAL MOHANLAL BHANDARI, WE DIRECT TO GRA NT THE BENEFIT OF EXEMPTION U/S. 54F OF THE ACT TO THE ASSESSEE ALS O TOWARDS THE PURCHASE OF LAND EFFECTED ON DATES PRIOR TO THE DATE OF TRANSFER OF THE ORIGINAL ASSET, WHICH ARE WELL WITHIN THE REASO NABLE PERIOD. 5. THE SECOND ISSUE RAISED BY THE ASSESSEE RELATES TO THE TAXABILITY OF INTEREST ON REFUND AMOUNTING TO RS.9,047/- . NO ITA NO. 295/PUN/2017 ASHOKKUMAR M. BHANDARI 4 ARGUMENT WAS ADVANCED ON BEHALF OF THE ASSESSEE ON THIS ISSUE. THIS GROUND IS, THEREFORE, DISMISSED AS SUCH. 6. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH MARCH, 2019. SD/- SD/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VI CE PRESIDENT PUNE; DATED : 28 TH MARCH, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A)-1, NASHIK 4. 5. 6. THE PR. CIT-1, NASHIK , , / DR B, ITAT, PUNE; / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR P RIVATE SECRETARY , / ITAT, PUNE ITA NO. 295/PUN/2017 ASHOKKUMAR M. BHANDARI 5 DATE 1. DRAFT DICTATED ON 26-03-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 27-03-2019 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. *