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2020 (4) TMI 395 - AT - Income TaxExemption claimed u/s 54G - Proof of investment - purchase of new plant and machinery for setting up the business of the industrial undertaking in the new location - whether Appellant company had opened an account at Canara Bank, Langford Town branch, and the said capital gains were deposited in the said capital gains bank account and the said amount was subsequently utilized in the development of industry as per the provisions of section 54G? - HELD THAT:- As per section 54G, the assessee should invest the amount of capital gain arising from the transfer of the capital asset situated in urban area mentioned in section 54G within a period of one year before the sale of original asset and balance part may be invested within a period of three years after the sale / transfer of asset. Hence, the A.O. to give benefit of section 54G by verifying the investment so made by the assessee within a period of one year prior to sale of asset or within the period of three years after the sale or transfer of such capital asset. DR pleaded that the issue may be sent back to the files of the CIT(A) and he has to obtain a remand report from the Assessing Officer, because this issue has not decided by the CIT(A). In our opinion, if we remand back the issue to the files of the CIT(A), he has to call for remand report from the A.O. before deciding the same and no useful purpose would be served. Hence we prefer to remit the issue to the files of the Assessing Officer for fresh consideration. In our opinion, the Assessing Officer has to see whether the capital gain arising out of the transfer of assets mentioned in section 54G of the Act is utilized for the acquisition of assets for the purpose of its business, should be qualified for the purpose of exemption u/s 54G, as there is no requirement that the land and building should be used for the purpose of business of the industrial undertaking - we remit the entire issue in dispute to the files of the Assessing Officer to examine the issue afresh after giving an opportunity of being heard to the assessee. The assessee shall place necessary evidences to substantiate its claim and cooperative with the AO - Decided in favour of assessee for statistical purposes.
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