SHRI ISHAQ SHAIKH, Dewas V. THE ITO, Dewas

ITA 76/IND/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5663 (ITAT-INDORE)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 28-09-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 18-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S DESHPANDE
• Assessee Lawyers: MOHD JAVED
• Section: 54F

Judgement Text

ISHAQ SHEIKH ITA NO. 76/IND/2016 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE .., ..!', #$ # !% BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER I.T.A. NO. 76/IND/2016 ASSESSMENT YEAR: 2011-12 ISHAQ SHEIKH DEWAS :: APPELLANT VS ITO DEWAS :: RESPONDENT REVENUE BY SHRI S.S. DESHPANDE ASSESSEE BY SHRI MOHD. JAVED ! ' #$ DATE OF HEARING 28.9.2016 %&'( #$ DATE OF PRONOUNCEMENT 25.10.2016 * O R D E R PER SHRI D.T. GARASIA, JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A) DATED 23.11.2015. ISHAQ SHEIKH ITA NO. 76/IND/2016 2 2. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE IS A RETIRED GOVERNMENT TEACHER WHO SUO MOTU FILED THE RE TURN OF INCOME. THE ASSESSEE HAS SOLD 4.844 HECTARES IRRIGAT ED AGRICULTURAL LAND SITUATED AT NAGDA DISTT DEWAS FOR A CONSIDERATION OF RS. 54 LACS. THE ASSESSEE HAS GIVEN BROKERAGE @ 3%. THE ASSESSEE HAS TAKEN THE VALUE AT RS.45,000/- PER HECTARE FOR CALCULATION OF CAPITAL GAIN. THE ASSESSEE RELIED UPON THE REGISTERED SALE DEED OF SHANS HYAM MALI WHEREIN THE VALUE OF AGRICULTURAL LAND WAS TAKEN AT RS.18,000/- PER HECTARE, THEREFORE, THE VALUE PER HEC TARE OF LAND IS RS. 45,000/-. THE ASSESSING OFFICER AFTER VERIFYING THE CLAIM MADE THE ADDITION ON ACCOUNT OF LONG TERM CAPITAL GAIN AT RS.47,11,813/-. THE ASSESSEE HAS CLAIMED DEDUCTION U/S 54F OF THE ACT ON HOUSE CONSTRUCTION AT NAGDA WHICH WAS DISALLOWED BY THE ASSESSING OFFICER. TH E MATTER WAS CARRIED IN APPEAL AND THE LEARNED CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. ISHAQ SHEIKH ITA NO. 76/IND/2016 3 3. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE BY SELLIN G THE LAND HAS PURCHASED THE AGRICULTURAL LAND AND THE COPY OF THE SAME HAS BEEN FURNISHED ALONG WITH PAPER BOOK AT PAGES 3 TO 8. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT AFTER THE DEATH OF SHRI ROSHAN SHEIKH ALL ASSETS LIKE AGRICULTURAL LAND AND PLOTS ARE TRANSFERRED IN THE NAME OF SHRI ISHSQ SHEIKH. SHRI ISHAQ SHEIKH IS THE LEGAL HEIR OF SHRI ROSHAN SHEIKH. AFTER THE SALE OF AGRICULTURAL LAND THE ASSESSEE HAS CONSTRUCTED TWO HOUS ES AT GRAM NAGDA. THE ASSESSEE IS UTILISING FULL CONSIDERAT ION IN THE CONSTRUCTION OF NEW HOUSES, THEREFORE, THE AS SESSEE IS ENTITLED TO DEDUCTION U/S 54F OF THE ACT. BY MIS TAKE THE ASSESSEE HAS CLAIMED DEDUCTION U/S 54B, THEREFORE, IT MAY BE ALLOWED. ISHAQ SHEIKH ITA NO. 76/IND/2016 4 4. THE LEARNED COUNSEL FOR THE ASSESSEE RELIED UPON THE ORDER OF THE INDORE BENCH OF THE TRIBUNAL IN ITA NO. 547/IND/13. THE LEARNED DR SUBMITTED THAT IF THE CLAIM OF THE ASSESSEE IS LEGAL, IT MAY BE RESTORED TO THE ASSE SSING OFFICER FOR VERIFICATION. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE SIDES. WE FIND THAT DURING THE COURSE OF HEARING THE LEARNED COUNSEL FOR THE ASSESSEE HAS FILED COPY OF ACKNOWLEDGEMENT, COPY OF AGRICULTURAL LAND PURCHASED, COPY OF VOTER ID AND COPY OF VARIOUS PURCHASE REGISTER S. WE, THEREFORE, RESTORE THIS ISSUE TO THE FILE OF TH E ASSESSING OFFICER WITH THE DIRECTION TO VERIFY THE CLAIM OF TH E ASSESSEE AND IF THE CLAIM OF THE ASSESSEE IS ENTITLED U/S 54F O F THE ACT, HE SHOULD ALLOW THE SAME. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ISHAQ SHEIKH ITA NO. 76/IND/2016 5 THE ORDER HAS BEEN PRONOUNCED IN OPEN COURT ON 28 OCTOBER, 2016. SD SD ( ..!') (..) #$ (O.P.MEENA) (D.T.GARASIA) ACCOUNTANT MEMBER J UDICIAL MEMBER (') / DATED : 28 OCTOBER, 2016. DN/ ISHAQ SHEIKH ITA NO. 76/IND/2016 6