Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (7) TMI 789 - AT - Income TaxRevision u/s 263 - sale consideration for sale of agricultural land - assessment of trust - assessee claimed amount spent on purchase of agricultural land as exemption u/s 11(1A) but since the Assessee was not registered u/s 12A/12AA or section 10(23C), the provisions of sections 11 and 12 of the Act were not applicable - AO had wrongly granted deduction u/s 54B to the Assessee as this section 54B is applicable to persons with status of "individual" or "HUF" only but the Assessee is a trust - HELD THAT:- Assessee has not controverted the facts that (i) it is not registered either u/s 12A or section 12AA, or approved u/s 10(23C) of the I.T. Act and that as such, the exemptions u/ss 11 & 12 are not applicable to it, as rightly observed by the ld. CIT(E). (ii) The AO had wrongly given benefit of deduction u/s 54B to the Assessee, without any claim by the Assessee for such benefit. (iii) Even otherwise, the provisions of section 54B of the Act are applicable to individuals and HUFs, whereas the Assessee is a trust, and so, not entitled to benefit u/s 54B of the Act. (iv) The Assessee is not entitled to benefit u/s 10(21) r.w.s. 35(1) r.w.s. 11 of the I.T. Act. (v) Whether the sale of the property was voluntary or otherwise, is not material to the assessment of the income chargeable to tax under the Income Tax Act, except if any exemption or benefit becomes available from the transaction of sale. CIT(E) has correctly held the assessment order to be erroneous as well prejudicial to the interests of the Revenue. CIT(E) has, rightly, hence, cancelled the assessment order passed u/s 143(3) - Decided against assessee.
|