Naresh Kumar, Karnal V. ITO, Karnal

ITA 6391/DEL/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6609 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 27-02-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 15-12-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: BEDOBINA CHAUDHURI
• Assessee Lawyers: KIRTI KARAN GOEL
• Section: 54B; 54F

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-I : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA NO.6391/DEL/2016 ASSESSMENT YEAR : 2007-08 NARESH KUMAR, KIRTI KARAN GOEL & ASSOCIATES, OPP. THANA CIVIL LINES, NEAR AMBEDKAR CHOWK, OLD G.T. ROAD, KARNAL. PAN: DCTPK7960R VS. ITO, WARD-3, KARNAL. ITA NO.6389/DEL/2016 ASSESSMENT YEAR : 2007-08 LATE SHRI PREM SINGH THROUGH LEGAL HEIR SHRI RAJ KUMAR, KIRTI KARAN GOEL & ASSOCIATES, OPP. THANA CIVIL LINES, NEAR AMBEDKAR CHOWK, OLD GT ROAD, KARNAL. VS. ITO, WARD-5, KARNAL (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI KIRTI KARAN GOEL, ADVOCATE DEPARTMENT BY : MS BEDOBINA CHAUDHURI, SR. DR DATE OF HEARING : 27.02.2017 DATE OF PRONOUNCEMENT : 28.02.2017 ITA NOS.6391 & 6389/DEL/2016 2 ORDER THESE TWO APPEALS FILED BY DIFFERENT ASSESSEES ARE AGAINST THE ORDERS PASSED BY THE CIT(A) ON 07.10.2016 IN RE LATION TO THE ASSESSMENT YEAR 2007-08. SINCE COMMON ISSUE IS RAISED IN THESE APPEALS, I AM, THEREFORE, PROCEEDING TO DISPO SE THEM OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIE NCE. ITA NO.6391/DEL/2016 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE DENIAL OF DEDUCTION U/S 54B FOR THE PURCHASE OF NEW PROPER TY BY THE TRANSFEROR IN THE NAME OF HIS WIFE, SMT. KANTA DEVI . 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE SOLD CERTAIN LAND ON WHICH LONG TERM CAPITAL GAIN W AS EARNED. THE ASSESSEE PURCHASED, INTER ALIA, AN AGRICULTURAL LAND WORTH RS.31,10,640 IN THE NAME OF HIS WIFE, SMT. KANTA DE VI. THE AO DENIED THE BENEFIT OF SECTION 54B FOR PURCHASE O F AGRICULTURAL LAND IN THE NAME OF HIS WIFE. THE LD. CIT(A) ITA NOS.6391 & 6389/DEL/2016 3 AFFIRMED THE SAME. THE ASSESSEE IS AGGRIEVED AGAIN ST THE DENIAL OF DEDUCTION U/S 54B. 4. I HAVE HEARD THE PARTIES AND PERUSED THE RELEVAN T MATERIAL ON RECORD. THERE IS NO DISPUTE THAT THE NEW PROPERT Y WAS PURCHASED BY THE ASSESSEE IN THE NAME OF HIS WIFE S MT. KANTA DEVI. IT IS OBSERVED THAT THERE IS A CLEAVAGE OF OP INION AMONGST THE HONBLE HIGH COURTS ON THE QUESTION OF GRANT OF BENEFIT U/S 54B ETC. WHEN NEW PROPERTY IS PURCHASED BY THE TRAN SFEROR IN HIS OWN NAME WITH ANOTHER OR EXCLUSIVELY IN THE NAM E OF ANOTHER. WHEREAS THE HONBLE PUNJAB & HARYANA HIGH COURT IN CIT VS. DINESH VERMA (2015) 233 TAXMANN 409 (P&H) HAS HELD THAT THE BENEFIT OF DEDUCTION CANNOT BE ALLOWE D WHEN A NEW PROPERTY IS PURCHASED IN THE NAME OF WIFE, THE HONBLE DELHI HIGH COURT IN CIT VS. KAMAL WAHAL (2013)351 ITR 4 (DEL), HAS HELD THAT DEDUCTION U/S 54F CANNOT BE DENIED I F THE PROPERTY IS NOT PURCHASED IN OWN NAME. SINCE THE A SSESSEE FALLS WITHIN THE JURISDICTION OF THE HONBLE PUNJAB & HARYANA ITA NOS.6391 & 6389/DEL/2016 4 HIGH COURT, RESPECTFULLY FOLLOWING THE PRECEDENT IN DINESH VERMA (SUPRA) , I HOLD THAT THE ASSESSEE WAS NOT RIGHT IN CLAIMING THE BENEFIT OF SECTION 54B IN PURCHASING N EW PROPERTY IN THE NAME OF HIS WIFE. THE IMPUGNED ORDER IS UPH ELD TO THIS EXTENT. ITA NO.6389/DEL/2016 5. BOTH THE SIDES ARE IN AGREEMENT THAT THE FACTS A ND CIRCUMSTANCES OF THIS APPEAL ARE, MUTATIS MUTANDIS , SIMILAR TO THE EARLIER APPEAL. IN FACT, NO SEPARATE SUBMISSION S WERE ADVANCED BY THE EITHER SIDE. FOLLOWING THE VIEW TA KEN HEREINABOVE, I UPHOLD THE IMPUGNED ORDER TO THE EXT ENT OF DENIAL OF THE BENEFIT U/S 54B. 6. IN THE RESULT, BOTH THE APPEALS ARE DISMISSE D. THE ORDER PRONOUNCED IN THE OPEN COURT ON 28.02.201 7. SD/- [R.S. SYAL] ACCOUNTANT MEMBER DATED, 28 TH FEBRUARY, 2017. ITA NOS.6391 & 6389/DEL/2016 5 DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.