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2015 (9) TMI 428 - AT - Income TaxCommission/royalty estimated at 2% on accrued basis on the sub contracted work - revision u/s 263 by CIT(A) as AO without properly examining the material on record has estimated the profit at 2% on work given on sub contract basis as claimed by the assessee and has not examined the assessee’s claim of exemption under section 54F for an amount of ₹ 11.00 lakhs against the capital gain arising out of sale of agricultural land - Held that:- As far as the first issue relating to CIT’s directions on estimation of profit from work contract business, as agreed by both the parties, it is of mere academic interest as in the consequential order passed by the Assessing Officer in pursuance to the directions of the CIT under section 263 the Assessing Officer has not made any variation to such income determined by him in the original assessment order. On a perusal of section 54B, it is evident that if the capital gain arising from sale of agricultural land is invested in purchase of agricultural land, then the assessee is eligible for exemption. Similarly section 54F provides that if the capital gain arising from transfer of long term capital asset, not being a residential house is utilized for purchase of a residential house, within a period of two years, then assessee will be eligible for exemption under section 54F. On a reading of the aforesaid provisions, we do not find any restriction/conditions imposed therein that if an assessee claims exemption under section 54B is not eligible to claim under section 54F. Respectfully following the order in ACIT vs. Sri Satyanarayana [2013 (11) TMI 1550 - ITAT HYDERABAD] we hold that the assessee will be eligible for exemption under section 54F for the amount of ₹ 11.00 lakhs invested in purchase of an apartment. Accordingly we set aside the impugned order of the learned CIT on this issue and restore the order of the Assessing Officer. - Decided in favour of assessee.
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