TMI Blog2020 (4) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... officer that as per the return of income the assessee has shown long term capital gain from sale of land against which the assessee has claimed exemption u/s. 54B - It is also clear from the findings of the lower authorities on verification of the submission of the assessee made during the course of assessment proceedings, the assessing officer has noticed that payment of ₹ 7 lacs was made for purchasing of new assets before the date of transfer of capital asset. It is clearly established from the finding of the assessing officer reported in the assessment order that impugned addition was not made on the basis of any incriminating material found during the course of search. After considering the judicial pronouncement referred in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income, on the ground that amount of ₹ 7,00,000/- has been paid for purchase of new capital asset before the date of transfer of original capital asset. Your appellant submits that aforesaid payments of ₹ 7,00,000/- are in respect of the land (new asset) purchased after the date of transfer of the original asset. While these payments of ₹ 7,00,000/- were made before transfer of the original assetf i.e. asset being sold),it is submitted that the requirement of 54B is to purchase new asset within a period of 2years after date of transfer of original asset. The section does not stipulate that the ENTIRE PAYMENT should be made after transfer of original asset. The stipulation is only regarding acquisition of the new capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 57,17,538/- from sale of Dharapura land and same was claimed as exempt u/s. 54B of the act. On verification, the assessing officer noticed that assessee has claimed exemption u/s. 54B of the act on purchasing of the new agricultural land at Kanzat. The assessing officer has further noticed from the detail of payment made towards purchase of the said agricultural land furnished by the assessee at the time of assessment proceedings that assessee had made payment of ₹ 7 lacs towards purchase of said land before the date of sale of Dharapura land. The assessing officer observed that as per section 54B of the act, the assessee has to purchase new agricultural land within two years after the date of transfer of capital asset and investme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imed full amount of sale consideration exemption u/s. 54B of the act to the amount of ₹ 57,17,538/- . During the course of assessment proceedings, the assessing officer has asked the assessee to file the supporting evidences with respect to the claim of exemption u/s. 54B of the act. As per the submission made before the assessing officer, the assessee has given full detail of payment made by cheques on different dates for purchase of the new agricultural land. On verification of the detail filed by the assessee, the assessing officer observed that a payment to the amount for ₹ 7 lacs towards purchase of new asset was made before the date of transfer of existing capital asset. The assessee has filed return of income u/s. 153A of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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