Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 1127 - AT - Income TaxAddition on account of long term capital gain - Nature of land sold - the abstracts of 7x12 issued by the E-dhara Mamlatdar showing the position as on 12.10.2009 was filed wherein the name of the new purchaser was rightly mentioned in the said abstracts instead in the name of the assessee - HELD THAT:- Regarding the first contention after considering the statement of the Talati and the cross-examination made by the assessee it was found that the land was not agricultural one as stated by the Talati is not borne by any record rather the collectors order way back in 2004 already classified the land in question as agricultural land. We, therefore, agree with the decision taken by the Ld. CIT(A). Eligible for benefit u/s 54B - Whether the advance payment made by the assessee which is more than the capital gain tantamount to purchase of the property? - It is an undisputed fact that when the initial payment of ₹ 12.15 crores has been made for purchase of the new asset that too more than the amount of capital gain to the tune of ₹ 2.90 crores before the due date of filing of the return of income under Section 139(1) of the Act. Considering the CBDT’s Circular No. 471 dated 15.10.1986, Circular No. 672 dated 06.12.1993 the said to be treated as construction for the purpose of Section 54/54F. Further that considering the Circular No. 672 issued by the CBDT the said amount paid out of the net sale consideration in the original asset is required to be treated as purchase / construct. Further that though the above clarification is for Section 54F, the analogy in our considered opinion has been rightly applied by the CIT(A) in the case in hand considering the facts and circumstances therein. Hence, advance payment by the appellant to purchase agricultural land from the sale proceed of the land sold by him has been rightly found eligible for benefit under Section 54B of the Act by the Ld. CIT(A) without any ambiguity so as to warrant interference. Once the main issue is decided in favour of the assessee consideration of the third limb relating to deposit of capital gain amount has become nugatory. The Revenue’s appeal is, therefore, dismissed.
|