TMI Blog2008 (4) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... R MITTAL, J. JUDGEMENT The instant appeal filed by the revenue under Section 260A of the Income Tax Act (hereinafter referred to as 'the Act') is directed against the order dated 24.04.2006 passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'A', Chandigarh (hereinafter referred to as 'the ITAT') in IT/SS/No.5/Chandi/2003 in case of the respondent-assessee for the Block Period 01.04.1988 to 15.07.1998 by raising the following substantial question of law:-Whether on the facts and law, the Hon'ble Income Tax Appellate Tribunal was justified in allowing deduction u/s 54B of the Income Tax Act, 1961 in respect of agricultural land purchased in the name of son of respondent/assessee when Section 54B stipulated investment of capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer in denying the deduction under Section 54F of the Act to the respondent. Against the said order, the revenue filed an appeal before the ITAT, who vide its order dated 24.04.2006 has dismissed the appeal, while observing as under:-"The issue before us revolves around allowability of deduction u/s 54B and 54F of the Act. The land in question was purchased by the assessee in the name of his son. The learned Assessing Officer disallowed the deduction on the ground that the land is in the name of the son of the assessee, so the deduction cannot be allowed, specially when the land was purchased by Sh. Gurnam Singh out of the sale proceeds of agricultural land and since Palwinder Singh was bachelor and was not having any independent source ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zed by the assessee for the purchase of new asset before the date of furnishing the return of income u/s 139. In fact, if the facts as detailed in the 'ikrarnama' are analyzed, the capital gains was utilized by the assessee for purchasing the new asset. Section 54B is applicable as per the provision of clause 2 of the section. The only dispute raised by the revenue is that the land was got registered in the name of his son. This fact is not disputed that the assessee was an old and illiterate person and never filed any return. At the same time, he was not having any other source of income also. It is not the case that the sale proceeds were used for any other purposes or beyond the stipulated period. This fact was also not disputed that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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