Mr Sandeep Dnyanoba Sakhare, Pune V. Principal Commissioner of Income-Tax -2, Pune

ITA 636/PUN/2021

AI Insights

The case involves Mr. Sandeep Dnyanoba Sakhare, who appealed against the order of the Pr.CIT-2, Pune, concerning the assessment year 2017-18. The original assessment accepted the assessee's declared income, but subsequent revisionary proceedings revealed discrepancies in the claims for exemption under section 54B and the handling of a deposit meant for capital gains. The Pr.CIT-2 found that the land transferred by the assessee did not undergo agricultural activity as required, and the deposit was not made in a designated Capital Gain Scheme account. Consequently, the assessment was set aside for a fresh evaluation.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 137508 (ITAT-PUNE)
• Duration Of Justice: 17 year(s) 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 05-12-2022
• Assessment Year: misc
• Appeal Filed On: 22-06-2005
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Revision of order
• Section: 263; 143(3); 54B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER ITA No.636/PUN/2021 निर्धारण वर्ा / Assessment Year: 2017-18 Mr. Sandeep Dnyanoba Sakhare S.No.86/2, Hinjewadi, River Road, Sakhare Wasti, Pune – 411057 PAN : BAWPS2037Q Vs. Pr.CIT-2, Pune Appellant Respondent आदेश / ORDER PER R.S.SYAL, VP : This appeal by the assessee is directed against the order dated 23.09.2021 passed by ld. Pr.CIT-2, Pune u/s 263 of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟) in relation to assessment year 2017-18. 2. Briefly stated, the facts of the case are that the assessee filed return declaring total income of Rs.1,28,41,685, which was accepted as such by the Assessing Officer (AO) by means of an order u/s 143(3) of the Act dated 12.12.2019. During the course of Assessee by: None (Written submissions) Revenue by: Shri P.R. Mane Date of hearing 06-12-2022 Date of pronouncement 06-12-2022 ITA No.636/PUN/2021 Sandeep Dnyanoba Sakhare 2 revisionary proceedings, the ld. CIT observed that the assessee wrongly claimed the exemption u/s 54B inasmuch as no agricultural activity was carried out by the assessee or his parents or his HUF in the two years immediately preceding the date on which the said land was transferred and hence the AO erred in granting exemption u/s 54B to that extent. He further observed that the assessee claimed benefit in respect of deposit of Rs.24 lacs in Capital gain scheme account. He noted that the amount of deposit was in regular Savings bank account and not in stipulated Capital gain scheme account. In view of these facts, he held that the assessment order was erroneous and prejudicial to the interest of revenue. In the ultimate analysis, he set aside the assessment order and directed the AO to frame the assessment afresh as per law after ascertaining all the necessary facts and making enquiries for the purpose. Aggrieved thereby, the assessee has approached the Tribunal. 3. We have heard the ld. DR and perused the record. The written submissions filed by the assessee have been taken into consideration. It can be seen that the first issue which was taken up by the ld. CIT is about the claim of exemption u/s 54B on ITA No.636/PUN/2021 Sandeep Dnyanoba Sakhare 3 transfer of agricultural land. There is no reference whatsoever in the assessment order about verifying the conditions precedent for claiming exemption in ascertaining whether the land in question was subjected to agricultural activity carried on by the assessee or his parents or his HUF in the two years immediately preceding the date on which the said land was transferred. The written submissions talk of the AO raising a query in this regard and the assessee also replying to the same. In the replies submitted before the AO, as have been reproduced in the written submissions, the emphasis is on the holding of the land and not carrying out the agricultural operations. Similar is the position regarding the benefit claimed by the assessee towards deposit of Rs.24 lacs in the Capital gain scheme account, for which the ld. CIT has recorded a finding that the same was deposited in regular Savings bank account and there was no evidence to the contrary. Examination of the necessary bank accounts from the point of view of exemption is essential on behalf of the AO. In the written submissions, the assessee has submitted that it was a designated account only. However, no copy of such bank account has been placed in the paper book to substantiate the claim. Since the ld. CIT has simply ITA No.636/PUN/2021 Sandeep Dnyanoba Sakhare 4 set aside the assessment order and directed the AO to frame the assessment afresh after making proper verification qua the above two issues, the door is still open to the assessee to furnish the necessary evidence in support of the points raised by the ld. CIT. As such, we do not find any reason for the assessee to be aggrieved by the impugned order. 4. In the result, the appeal is dismissed Order pronounced in the Open Court on 06 th December, 2022. Sd/- Sd/- (S.S.VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; नदिधांक Dated : 06 th December, 2022 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलधर्थी / The Appellant; 2. प्रत्यर्थी / The Respondent; 3. नवभधगीय प्रनिनिनर्, आयकर अपीलीय अनर्करण, पुणे “B” / DR 4. „B‟, ITAT, Pune गधर्ा फधईल / Guard file आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अनर्करण ,पुणे / ITAT, Pune ITA No.636/PUN/2021 Sandeep Dnyanoba Sakhare 5 Date 1. Draft dictated on 06-12-2022 Sr.PS 2. Draft placed before author 06-12-2022 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. *