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2018 (1) TMI 783 - AT - Income TaxDeduction u/s 54B eligibility - Held that:- Agricultural record produced before us does show at least with respect to Fasil year 1416, 1417 and 1418 the details of agricultural produce. This it is apparent that land sold by the assessee shown in the sale deed was an agricultural land and further in view of the evidences produced by the assessee of agricultural produce for the relevant period which is not controverted by revenue then, assessee is eligible for deduction u/s 54B as the capital asset being land which was used for the agricultural purposes for specified number of years - Decided in favour of assessee Deduction u./s 54F as sum paid by the appellant for purchase of new residence - Held that:- The assessee has deposited a sum of ₹ 6.50 lacs on 05.07.2011, however due to clerical error the appellant has shown this figure at ₹ 704772/-. Further, the assessee could not point out the exact payment about this whether related to the acquisition of house. Therefore, we do not find any infirmity in the order of the lower authorities. Hence, the claim of the assessee u/s 54F to the extent of ₹ 650000/- has rightly been rejected. Assessee stated as has deposited a sum of ₹ 20.50 lacs in capital gain account scheme however AO has granted deduction of only ₹ 329100/- - Held that:- Allahabad High Court in case of Ranjit Narang Vs. CIT [2009 (7) TMI 118 - ALLAHABAD HIGH COURT] wherein, it has been held that if the amount deposited is not utilized for the purposes of acquisition in the house property then such shortfall shall be chargeable to tax in the year in which the period of three years from the date of the transfer of the original asset expires. Therefore, the assessee must be granted deduction of deposit subject to time limit and unutilized amount shall be charged to tax in different year as provided under the proviso to section 54F(4) - AO is not correct in charging the sum of unutilized amount in Assessment Year 2012-13 but it is chargeable to tax in later assessment year. Therefore, the AO is directed to grant deduction to the assessee and take remedial action in specified year if the same is not offered in income by the assessee. This ground with respect to ₹ 20.50 lacs is allowed and ₹ 6.50 lacs is dismissed. - Decided partly in favour of assessee.
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