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2020 (2) TMI 89 - AT - Income TaxDisallowance u/s 54B - assessee has sold ancestral agriculture land admeasuring 10117 sq.meters situated at village Ambli together with other co-owners for a consideration by registered sale deed - assessee was having 50% share in that property - HELD THAT:- CIT(A) has come to the conclusion that assessee has utilised sales consideration of old land for purchase of new agriculture land, and prima facie complied with requirements of section 54B, and therefore, purchase price i.e. investment in new land of ₹ 2,70,00,000 being more than the sale consideration received of ₹ 2,67,50,000/-, there would not be any necessity to furnish evidence to prove cost of improvement. The Ld.CIT(A) observed that there was no bar on the appellate authorities to entertain claim of the assessee in the course of appellate proceedings, which the AO denied on account of non-filing of revised return. While holding so, the Ld.CIT(A) relied upon various authoritative judgments as mentioned in his above finding. We find that Ld.CIT(A) has considered the issue from factual as well as legal angle and arrived at a just conclusion, which cannot be said to be incorrect or unjustified. In view of the above, our interference is not called for on this issue. It is upheld. Ground no.1 of Revenue is thus dismissed. Addition invoking provisions of section 56(2)(vii)(b) - difference between the value adopted by the stamp valuation authority, and purchase consideration shown by the assessee - HELD THAT:- After considering comparable instance furnished by the assessee and also remand report submitted by the AO, the Ld.CIT(A) found that the rate for the transactions in the area registered subsequent to that of the assessee’s transaction should have been at higher rates as per normal circumstances, and therefore, there is no possibility of payment in cash in excess of purchase price shown by the assessee. It was also recorded by the CIT(A) that comparable cases furnished by the assessee has not been disputed by the AO in his remand report, and therefore, no case has been made out by the AO on this count. Secondly, it has been observed by the Ld.CIT(A) that when the assessee disputed the value of the property as per the stamp valuation authority, which was considered by the assessee as purchase consideration, then the Ld.AO ought to have referred the matter to the DVO for determination of fair market value as contemplated under section 50C(2) of the Act. We find that the Ld.CIT(A) has made detailed analysis of the matter and based on the evidence furnished by the assessee and also remand report submitted by the assessee, arrived at a just conclusion that the impugned addition was not justifiable in the eyes of law. There is no other material before us to better the case of the Revenue and to take a different view than the view taken by the Ld.CIT(A). Therefore, we find no infirmity in the order of the Ld.CIT(A) on this issue - Appeal of the Revenue is dismissed.
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