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2018 (2) TMI 739

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....e: Gahunje, Taluka- Maval, Dist.- Pune. After sale of said land, the assessee invested part of his share of sale consideration towards purchase of another piece of agricultural land and thus, claimed deduction u/s. 54B of the Act. 2.1 During the course of scrutiny assessment proceedings, the assessee filed revised computation of income inter alia claiming deduction of Rs. 36,15,000/- u/s. 54F of the Act and expenditure of Rs. 27,646/-on account of housing loan interest. In the revised computation of income, the assessee also disclosed agricultural income of Rs. 14,262/-. The Assessing Officer rejected assessee's claim of deduction u/s. 54B on the ground that the assessee has not been able to show from cogent evidences that assessee or his parents used the land for agricultural purpose in the immediately two preceding years before the sale. In so far as, other claims of the assessee viz. claim of deduction u/s. 54F, interest on housing loan and agricultural income, the Assessing Officer out rightly rejected the claim of assessee on the ground that for claiming such deductions, the assessee should have claimed by filing revised return of income, as per the provisions of the Act. By ....

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....mently supporting the findings of Assessing Officer submitted that during the course of scrutiny assessment proceedings, the assessee had furnished copy of 7/12 extracts in respect of land sold and on which the assessee has claimed benefit of deduction u/s. 54B of the Act. The Commissioner of Income Tax (Appeals) merely on the basis of 7/12 extract has granted benefit of deduction u/s. 54B of the Act. The 7/12 extract is not sufficient evidence to prove that the land was under cultivation by assessee or his parents. The assessee has not filed any supporting evidence viz. purchase of seed, manure and invoice for sale of crop, etc to show that agricultural activities were in fact carried out and agricultural produce was sold in the market. A perusal of 7/12 extracts reveal that the land in question was joint land owned by HUF registered in the name of "Karta". A further perusal of Sale Deed dated 07.10.2009 reveal that assessee had become owner of the land on the basis of division effected in the family as per agreement dated 28.04.2008. Thus, there is no question of agricultural activities being carried out on the land or land being used for agricultural purpose prior to that date. ....

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....ops taken right from the years 2000-01 to 2009-10 are described therein by the Tahsildar, Maval, which shows that the sold land was continuously under agricultural operations as back as years 2000-01 to the date of sale. It may be stated that the Ld. Assessing Officer had asked the assessee to produce 7/12 extracts in support of the proof that the lands were agricultural lands and were put to use for agricultural purposes. This requirement was duly sufficed by the assessee. Yet, one more evidence in the form bank statement of the Pune Distt. Central Bank [Paper book pages 248 to 251] was adduced before him which showed that on - 18/07/2008 Rs. 4178/- being sugar bill   21/10/2008 Rs. 6864/- being sugar bill PB page 249 30/01/2009 Rs. 24,438/- being sugar cane bill   05/09/2009 Rs. 5045/- being sugar cane bill   29/10/2009 Rs. 2018/- being sugar cane bill PB page 250 07/01/2010 Rs. 2018/- being sugar cane bill and   05/02/2010 Rs. 807/- being sugar cane bill  PB page 251 were credited to the assessee's bank account. The above entries are pertaining the previous years relevant to the assessment years 2009-10 and 2010-11. These stateme....

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....ion of the family of the late GajabaBodke, grandfather of the assessee, it is concluded that the land subject to capital gains became the individual property of the assessee. Therefore, the money of sale proceeds although appropriated to the assessee's wife by the purchaser was considered to be proceeds belonging to the assessee and the same was clubbed u/s 64 in the assessee's hand while filing the Return of Income. However, at the time of compilation of a revised computation of total income, due to some arithmetical errors in the original computation of capital gains, a claim for deduction u/s. 54F for the investment made by the wife out of the proceeds received in her name was sought. Now at the instance of a specific query raised by the Hon'ble Bench as to why the wife's share was clubbed u/s. 64, in the assessee's computation, it transpired to the assessee that there was a mistake on his part to put forth a claim for deduction u/s. 54F. The assessee, therefore, does not push his claim any more, before your Honour. As regards the remaining issues, the assessee states that the relief allowed by the Ld. Commissioner (Appeals) may kindly be confirmed o....

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....rm of 7/12 extracts clearly indicate that Sugarcane was grown in Gut No. 239, Village - Gahunje wherein, the assessee is one of the owner. A close reading of 7/12 extracts at page 216 to 218 of the paper book for financial year 2007-08, 2008-09 and 2009-10 in respect of Survey No. 239 show that land was under self cultivation. During the course of scrutiny assessment proceedings, the Assessing Officer has not raised any doubt over the authenticity of 7/12 extracts furnished by assessee. The 7/12 extracts is revenue record maintained by Land Revenue Department of State Govt. Therefore, it carries some sanctity with respect of its contents. The assessee has also furnished a copy of bank statement at page 248 to 251 of the paper book indicating that Sugarcane cultivated by assessee was sold to sugar factories. The assessee received payment from sugar factories in his bank account bearing No.4016 with Pune District Central Co Operative Bank Ltd, Dehuroad Branch, Pune. A perusal of bank statement shows that the assessee has received payment in respect of Sugarcane bill on various dates starting from 18.07.2008 to 05.02.2010. The entries in the passbook further supports the claim of ass....

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....essee by observing as under: "15. I have carefully considered the facts of the case and I find that the claim of the appellant can be allowed even if it is made by way of filing revised computation by appellate authorities as held in the case of Pruthvi Brokers and Shareholders Pvt. Ltd. (supra). As regards, appellant not showing any house property income, it must be appreciated that in case of self occupied property there will not be any income to be shown under 'House Property' except claim of interest upto stipulated limit. Therefore, I do not find merit in the findings of the Assessing Officer and he is directed to allow the claim of Rs. 27,646/- on account of interest on House Property as per revised computation of income. Thus, the ground is allowed." We do not find any infirmity in the order of Commissioner of Income Tax (Appeals) in accepting the claim of assessee made during assessment proceedings by following revised computation of income. No material has been placed on record by Revenue to show that the house in respect of which claim is made, is not self occupied. The provisions of section 24 permit such deduction in respect of self occupied house up to Rs. 30,000/-....