9911796707
TMI Blog2014 (4) TMI 1044X X X X Extracts X X X X X X X X Extracts X X X X ..... hem of by this common order. 2. The first issue arises for consideration is exemption under section 54B of the Act. The claim of the assessee is that the subject land was under cultivation till the date of sale. The assessee also claims that the sale proceeds are invested in agricultural land. The Assessing Officer found that the assessee has already converted the wet land into dry land and let it out the same for running a motor workshop. The Assessing Officer has also observed that the assessee has declared agricultural income in the returns of income filed. However, the Commissioner of Income-tax (Appeals) without considering the nature of the land allowed the claim of the assessee. 3. We have carefully gone through the provisions of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asset any capital gain arising from its transfer within a period of three years of its purchase, the cost shall be reduced, by the amount of the capital gain. (2) The amount of the capital gain which is not utilised by the assessee for the purchase of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return (such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139) in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in an account as may be specified in accordance with capital gain scheme. The Commissioner of Income-tax (Appeals), after examining the matter found that what was transferred is a capital asset since the land is situated within the municipal limits of Cochin Corporation. However, the Commissioner of Income-tax (Appeals) failed to examine with regard to actual usage of the land immediately preceding the two years from the date on which the transfer took place. The Commissioner of Income-tax (Appeals) has not recorded any finding with regard to purchase of land for agricultural purposes. The Commissioner of Income-tax (Appeals) simply observed that the land which was sold by the assessee was agricultural land. He failed to record any finding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned Departmental representative. Since the main issue with regard to exemption under section 54B is remitted back to the file of the Assessing Officer, this Tribunal is of the considered opinion that the fair market value also needs to be reconsidered by the Assessing Officer after giving reasonable opportunity of hearing to the assessee. Accordingly, the orders of the authorities below on this issue are also set aside and the issue of fair market value is also remitted back to the file of the Assessing Officer. The Assessing Officer shall reconsider the issue of the fair market value and decide the same in accordance with law after giving reasonable opportunity of hearing to the assessee. 7. In the result, the appeals and the cro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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