TMI Blog2010 (11) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. - 670 of 2005 - - - Dated:- 30-11-2010 - MR. JUSTICE ADARSH KUMAR GOEL, MR. JUSTICE AJAY KUMAR MITTAL, JJ. Mr. Rajesh Katoch, Standing Counsel for the appellant-Revenue. Mr. Akshay Bhan, Advocate for the respondent-assessee AJAY KUMAR MITTAL, J. This appeal under Section 260A of the Income-Tax Act, 1961 (for short the Act ) has been filed by the assessee against the order dated 15.7.2005, passed by the Income Tax Appellate Tribunal Chandigarh Bench B Chandigarh (in short the Tribunal ) in ITA No. 547/CHANDI/2003, relating to the assessment year 1998-99. The appeal was admitted on 13.12.2006 for determination of the following substantial question of law by this Court: Whether exemption of capital gains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee for purchasing agricultural lands which was required to be considered for purposes of working out the benefit of deduction under Section 54B of the Act, and since the amount invested was in excess of the capital gains for purchasing agricultural lands, the requirements of Section 54B of the Act stood complied with. The relevant observations read thus: 3.2 As is evident from the above, the amounts utilized towards the purchase of agricultural lands have also to be considered for the purpose of working out the benefit of deduction u/s 54B. Since the amounts, far in excess of the capital gains had been invested in the purchase or had been utilized towards the purchase (in the shape of advances), nothing remained to be deposited in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned first appellate authority opined that since the capitals gain have been invested in the purchase of the land, nothing remained to be deposited in the specified account and, thus, the requirement of Section 54B stood complied with. 7. The only grievance of the revenue is that the amount was not deposited in the specified account in any bank or institution as per the scheme of Central Government. Section 54B (2) is very much clear which says that the amount of the capital gains which is not utilized by the assessee for the purpose of the new assets before the date of filing of return under Section 139 shall be deposited by him before furnishing such return. Undisputedly, the assessee purchased the new assets or made the advance paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jayalakshmi Rajendran (1985) 152 ITR 744 (Madras) wherein it was held that for satisfying the condition as mentioned in Section 54B (1), the purchase of any other agricultural land must be through registered conveyance. A mere agreement to purchase is not sufficient. In the present case also the purchase of the new asset/agricultural land is through registered deed further supports the case of the assessee. While coming to this conclusion, we are further fortified by the decision pronounced by the Hon ble High Court of Allahabad in the case of CIT vs. Janrudhan Das (1987) 163 ITR 806 (All.) and also from the decision of the High Court of Kerala pronounced in the case of P.K. Kesavan Nair Vs. CIT (1988) 174 ITR 253 (Ker.). This is also not ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
