TMI Blog2023 (2) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... f agricultural land, therefore, the view of the Ld. PCIT is not correct in exercising her revision jurisdiction u/s.263 of the Act on this issue. Claim of Depreciation on buses: Exercise of revision Jurisdiction by the PCIT - HELD THAT:- Assessee owned 7 buses and claimed depreciation upon those buses. However, no details regarding acquisition of the said 7 buses were furnished by the assessee before the AO, nor were called for by the AO. AO allowed the claim of depreciation without verifying the value of the buses and their date of acquisition. AR on the other hand has stressed that the issue was examined by the AO. After considering the rival submissions, we are of the view that the Ld. PCIT has rightly directed the AO to examine this factual aspect. The order of the PCIT, therefore, on this issue is upheld and the AO is directed to verify the depreciation claim on buses. Claim of deduction u/s. 54F - rectification order passed by the AO u/s. 154 of the Act stating that the assessee had furnished additional evidence before the Ld. CIT(A) in respect of the aforesaid claim which the Ld. CIT(A) has refused to admit - HELD THAT:- After considering the rival submissions, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of a house within stipulated time period. The Assessing Officer (in short, the AO ), however, did not look into the aforesaid claim of the assessee and passed the assessment order u/s. 143(3) of the Act dated 11.12.2019. Thereafter, the assessee moved a rectification application u/s. 154 of the Act to the AO stating that his claim relating to deduction u/s. 54B of the Act and 54F has not been considered by the AO. Upon the said application of the assessee, the AO passed an order u/s. 154 of the Act on 6.1.2020, whereby, the AO allowed the claim of the assessee u/s. 54B of the Act at a lesser amount i.e. at Rs. 8000000/- as against Rs. 9590000/-, whereas, the Ld. AO denied the claim in relation to the deduction u/s. 54F of the Income Tax Act. At this stage, it is relevant to mention here that assessee apart from filing an application u/s. 154 of the Act also filed an appeal before the Ld. CIT(A) u/s. 250 of the Act, whereby, the assessee contested the action of the AO in not granting him deduction u/s. 54B and 54F of the Income Tax Act. As stated by the Ld. Counsel, the said appeal is still pending before the Ld. CIT(A). In respect of the order passed by the AO u/s. 154 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relating to order passed u/s. 154 of the Act, the issues are whether the assessee is entitled to deduction u/s. 54F of the Act and further about the quantum of the amount of claim u/s. 54B of the Act. Issue of deduction u/s. 54B of the Act.- This issue has been raised by the Ld. PCIT in his order passed u/s. 263 of the Act observing that the assessee had not deposited the proceeds and the sale of land into the capital gain account in time and that further the AO has exceeded his jurisdiction in giving relief to the assessee in this respect in an order passed u/s. 154 of the Act. 5. We have considered the rival contentions of the Ld. Counsel of the parties. The sole ground on which the Ld. PCIT is of the view that the assessee is not entitled to deduction u/s. 54B of the Act is that the assessee has not deposited the sale proceeds into the capital gain account before the due date of filing of the return but on a later date. This issue is squarely covered by the decision of the Coordinate Chandigarh Bench of the Tribunal in the case of Mrs. Seema Sabharwal vs. Income Tax Officer ITA No. 272/Chd/2017 vide order dated 05.02.2018 reported in 2018-TIOL-883-ITAT-CHD : [2018] 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessment proceedings, subsequent to the date of transfer of the original asset, an assessee may claim that he will invest the amount in purchase/construction of a new house, though not have taken any steps towards that direction till then. In such a scenario, there should not be any method or procedure before the Assessing officer through which he could gather the real intention of the assessee, as the assessee, by saying so, may delay the taxation of the capital gains earned at least for three years from the date of transfer of original asset. Hence, sub-section (2) puts an embargo to the assessee to casually claim the benefit of section 54 at the time of assessment, without being any act done to show his real intention of purchasing/constructing a new residential unit. Sub-section (2), therefore, governs the conduct of the assessee that the assessee should put the amount of capital gains in an account in any such bank or institution specifically notified in this respect and that the return of the assessee should be accompanied by submitting a proof of such deposit, hence, sub-section (2) is an enabling provision which governs the Act of the assessee, who intends to clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Coordinate Bench of the Tribunal (supra), since the assessee had purchased the agricultural land within the stipulated period and also produced the evidence of the same at the time of assessment proceedings and further there was no doubt about the intention of the assessee from very beginning to invest the said amount for purchase of agricultural land, therefore, the view of the Ld. PCIT is not correct in exercising her revision jurisdiction u/s.263 of the Act on this issue. 6. Claim of Depreciation on buses: Exercise of revision Jurisdiction by the PCIT: The Ld. PCIT in this respect has noted that the assessee has mentioned that he is in the business of plying buses. That the assessee during the year had purchased one new bus for Rs. 1050000/- That the assessee owned 7 buses and claimed depreciation upon those buses. However, no details regarding acquisition of the said 7 buses were furnished by the assessee before the AO, nor were called for by the AO. The AO allowed the claim of depreciation of Rs. 857973/- without verifying the value of the buses and their date of acquisition. The Ld. AR on the other hand has stressed that the issue was examined by the AO. However, af ..... X X X X Extracts X X X X X X X X Extracts X X X X
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