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2015 (10) TMI 926 - AT - Income TaxEntitlement to exemption u/s.54F - Whether the CIT(Appeals) has erred in accepting the entire claim of the assessees with regard to sale of standing trees as agriculture income? - Held that:- A perusal of the assessment order shows that the Assessing Officer has partly disallowed the claim of the assessee in respect of agriculture income arising from sale of standing trees. The Assessing Officer has made partial dis-allowance merely on estimation basis. No detailed survey was conducted by the Assessing Officer although he visited the site personally with one inspector. The CIT(Appeals) in his order has given the details of the property sold by the assessees. Along with the details of agricultural land, the details of trees planted in the scheduled property is also given. The precise number of trees along with varieties is mentioned. It has been stated that 679 trees consisting of mango, teak, coconut, guava, jack, lime and sapotta are standing on the two parcels of land sold by the assessees. In view of thorough details given in the sale deed, there was no question of making any estimations by the Assessing Officer. Moreover, the Assessing Officer has not given any basis for making such estimation. Subsequently, in the remand report dt.15-05-2013, in the case of Shri S.Chokalingam, the Assessing Officer in his comments to para No.6a to 6f has stated that “sale deed executed has been promptly registered and the value of the said land and trees have been arrived based on relevant market value. Hence, the assessees claim may be accepted”. In view of specific admission in the remand report by the Assessing Officer and the detailed findings of the CIT(Appeals) on the issue, we do not find any merit in the appeals of the Revenue. - Decided against revenue. Revised computation filed by the assessees at the time of assessment without filing revised return of income - Whether the Assessing Officer can consider the revised computation of income at the time of assessment? - Held that:- Agriculture land of the assessee is clearly outside the ambit of the term ‘capital asset’. Initially, the assessees have treated the agriculture land as capital asset and accordingly claimed exemption u/s.54B/54F on account of purchase of new agriculture land/residential property. Subsequently, the assessees realized their mistake, and at the time of assessment filed revised computation by applying correct provisions of the law. The Assessing Officer rejected the revised computation. The CIT(Appeals) confirmed the findings of the Assessing Officer. The Hon'ble Supreme Court of India in the case of M/s.Goetze India Ltd., Vs. CIT reported as 284 ITR 323 has held that the Assessing Officer has no power to entertain a claim for deduction otherwise than by revised return. The Hon'ble Apex Court further made it clear that it is the power of Assessing Officer that is limited to entertain fresh claim but does not impinge the power of the Income Tax Appellate Tribunal u/s.254 of the Act. In view of the well settled law and the facts of the case, we are of considered opinion that the claim of the assessees to treat the sale proceeds of agricultural land as exempt from tax has merit. The appeals are remitted back to the Assessing Officer to consider the revised computation filed by the assessees and thereafter, decide the issue afresh in accordance with law. - Appeals of the assessees are partly allowed for statistical purposes
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