Sh. Dalbir Singh, Chhajumajra V. ITO, W-6(3), Mohali

ITA 313/CHANDI/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1273 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 09-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: GULSHAN ARORA
• Keywords: Capital asset
• Section: 143(3); 54B; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 313/CHD/2018 ASSESSMENT YEAR : 2013-14 SH DALBIR SINGH, VS. THE ITO, WARD 6(3), S/O SH. RAM SINGH, MOHALI VILALGE CHHAJUMAJRA, KHARAR PAN NO. DSHPS3473M (APPELLANT) (RESPONDENT) APPELLANT BY : SH. GULSHAN ARORA, ADVOC ATE RESPONDENT BY : SH. MANOJ KUMAR, SR.DR DATE OF HEARING : 05.07.2018 DATE OF PRONOUNCEMENT : 07.09. 2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 22.12.2017 OF THE COMMISSIONER OF I NCOME TAX(A)-2, CHANDIGARH [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE ASSESSEE IN THIS APPEAL HAS AGITATED THE DEN IAL OF DEDUCTION BY THE LOWER AUTHORITIES CLAIMED BY THE ASSESSEE U/ S 54B OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT') . 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE IS A AGRICULTURIST RESIDING IN VILLAGE CHHAJUMAJRA, TEHS IL KHARAR. HE OWNED ANCESTRAL AGRICULTURAL LAND IN THIS VILLAGE. NO RETURN OF ITA NO. 313/CHD/2018- SHR DALBIR SINGH, KHARAR 2 INCOME WAS FILED BY THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION AS HE HAD EARNED INCOME FROM OTHER SOURCES ONLY I.E. B ANK INTEREST OF RS.25,770/- WHICH WAS BELOW THE TAXABLE LIMIT. DU RING THE YEAR UNDER CONSIDERATION, THE ASSESSEE MADE SALE OF AGRI CULTURAL LAND MEASURING 6 KANAL 19 MARLAS IN VILLAGE SANTEMAJRA J OINTLY WITH LATE SH. NIKKA SINGH, SUKHRNINDER SINGH, KULBIR SINGH AN D GURDEV SINGH FOR A CONSIDERATION OF RS.65,26,000/-, THE CIRCLE RATE OF WHICH WAS RS.73,84,375/-. THE ASSESSEE RECEIVED HIS SHARE I N SALE AS PER CIRCLE RATE AT RS. 18,06,250/-. THEREFORE, PROCEEDINGS U /S 147 OF THE INCOME TAX ACT IN THE ABOVE NOTED CASE WERE INITIAT ED BY THE ASSESSING OFFICER FOR THE ASSESSMENT YEAR 2013-1 4 AFTER RECORDING THE REASONS THAT THE ASSESSEE HAD SOLD AGRICULTURA L LAND IN VILLAGE CHAJJUMAJRA ALONGWITH OTHER CO-OWNERS VIDE REGISTRA TION SALE DEED DATED 17.4.2012 AND RECEIVED HIS SHARE OF SALE CONS IDERATION WHICH WAS CHARGEABLE TO CAPITAL GAIN AS THE LAND SOLD BY THE ASSESSEE WAS SITUATED WITHIN THE MUNICIPAL LIMIT, BUT THE ASSESS EE HAD NOT FILED INCOME TAX RETURN SHOWING THE SAID INCOME. IN RES PONSE TO NOTICE U/S 147, THE ASSESSEE FILED INCOME TAX RETURN DECL ARING INCOME OF RS.25, 770/-(INCOME FROM OTHER SOURCES) APART FRO M AGRICULTURAL INCOME OF RS.2,65,900/-. AGAINST SALE CONSIDER ATION OF RS. 18,06,250/- RECEIVED BY ASSESSEE FROM SALE OF LAND , THE ASSESSEE CLAIMED EXEMPTION U/S 54B OF THE ACT IN RESPECT OF AGRICULTURAL LAND PURCHASED IN THE NAME OF HIS SONS NAMELY SH. PARVI NDER SINGH & RANDHIR SINGH. THE ASSESSING OFFICER, HOWEVER, COMP LETED ASSESSMENT IN THIS CASE U/S 143(3) R.W.S.147 OF THE INCOME TAX ACT VIDE ORDER DATED 23.9.2016 AT A TOTAL INCOME OF RS. L7,89,420 /- AFTER MAKING ITA NO. 313/CHD/2018- SHR DALBIR SINGH, KHARAR 3 ADDITION ON ACCOUNT OF LONG TERM CAPITAL GAINS AT RS. L 7,63,650/-. THE EXEMPTION CLAIMED BY THE AS SESSEE U/S 54B IN RESPECT OF AGRICULTURAL LAND PURCHASED IN THE NAME OF ASSESSEES SONS WAS NOT ALLOWED BY THE ASSESSING OFFICER. 4. THE LD. CIT(A) CONFIRMED THE ORDER OF THE ASSE SSING OFFICER DENYING DEDUCTION TO THE ASSESSEE U/S 54B OF THE AC T. THE ASSESSEE, THUS, HAS COME IN APPEAL BEFORE US. 5. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE IS A RURAL AGRICULTURIST AND RESIDES I N JOINT FAMILY WITH HIS TWO SONS AND GRANDSONS. THAT ALL THE MEMBERS O F THE ASSESSEE FAMILY HAVE BEEN CULTIVATING AGRICULTURAL LAND JOIN TLY AND HAVING A COMMON KITCHEN. THAT THE AGRICULTURAL LAND SOLD BY THE ASSESSEE WAS ANCESTRAL LAND. THAT SINCE THE AGE OF THE ASSESSEE WAS PROGRESSING, AS HE WAS ALREADY OF 61 YEARS AND HE WAS NOT KEEPING G OOD HEALTH, HE THOUGHT IT PROPER TO PURCHASE THE AGRICULTURAL LA ND OUT OF SALE PROCEEDS IN THE NAME OF HIS TWO SONS. THAT THE MON EY INVESTED IN THE NEW CAPITAL ASSET I.E AGRICULTURAL LAND WAS OUT OF SALE PROCEEDS OF THE AGRICULTURAL LAND SOLD. HE, THEREFORE, HAS SUBMITT ED THAT THE LOWER AUTHORITIES WERE NOT JUSTIFIED IN DENIAL OF DEDUCTI ON U/S 54B OF THE ACT 6. THE LD. DR, ON THE OTHER HAND, HAS RELIED ON TH E FINDINGS OF THE LOWER AUTHORITIES. 7. AFTER CONSIDERING THE RIVAL SUBMISSIONS OF BOTH THE PARTIES AND IN VIEW OF THE SUBMISSIONS OF THE LD. COUNSEL FOR T HE ASSESSEE THAT ITA NO. 313/CHD/2018- SHR DALBIR SINGH, KHARAR 4 THE ASSESSEE BEING AN OLD AGED PERSON AND WAS NOT KEEPING WELL THOUGHT IT PRUDENT TO BUY THE AGRICULTURAL LAND IN THE NAME OF HIS SONS TO AVOID FUTURE FAMILY DISPUTES RELATING TO THE IN HERITANCE OF THE PROPERTY OF THE ASSESSEE AFTER HIS DEATH. THE SALE PROCEEDS FROM THE SALE OF AGRICULTURAL LAND WERE DULY INVESTED IN THE PURCHASE OF AGRICULTURAL LAND ITSELF. WE, THEREFORE, DO NOT FIN D ANY JUSTIFICATION ON THE PART OF THE LOWER AUTHORITIES IN DENYING THE CLAIM OF DEDUCTION THE ASSESSEE U/S 54B OF THE ACT. 8. IN VIEW OF THIS, ORDER OF THE LOWER AUTHORITIE S IS HEREBY SET ASIDE AND THE ASSESSING OFFICER IS DIRECTED TO ALLO W DEDUCTION TO THE ASSESSEE U/S 54B OF THE ACT IN RESPECT OF THE INVES TMENT MADE IN THE PURCHASE OF THE AGRICULTURAL LAND IN THE NAME OF HI S SONS. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS H EREBY ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 07.09.2018 SD/- SD/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 07.09.2018 RKK COPY TO: THE APPELLANT THE RESPONDENT THE CIT THE CIT(A) THE DR