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TMI Blog2024 (2) TMI 1109X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing grounds:- "(1) The learned commissioner of income tax (appeal)-17 has erred in law, in confirming the addition of agricultural income as a undisclosed sours of Rs.2270575/-which is arbitrary and unjustified. (2) The learned commissioner of income tax (appeal)-17 has erred in law in rejecting the claim & exemption of section 54 of invested in residential house of Rs.161051/- which is most arbitrary and unjustified. (3) The learned commissioner of income (appeal) tax has erred in law in confirming the expanses disallowed Rs. 20596/-by the assessing officer which is most arbitrary and unjustified. not Prosod (4) The commissioner of income tax (Appeals) has erred in law in confirming the initiation of penalty proceeding under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... area of agricultural land held by the assessee individually and in case of joint holding the area pertaining to the assessee out of total area and nature of holding of assessee and also submit whether on land held by the assessee is irrigated land or non irrigated. After considering the submissions of the assessee, the Assessing Officer ("AO") vide order dated 04/03/2014 passed under section 143(3) of the Act held that the claim of exemption of agricultural income shown by the assessee cannot be allowed as the assessee has failed to produce 7/12 extract for the relevant financial year, extract of Talati register, transporter bill/lorry receipt/road challan/labour charges bill for transportation, details of expenses related to agricultural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, it has land holding in Sindhudurg district by all the family members. In support of his claim that the aforesaid income was earned from agricultural operations, the assessee submitted a copy of 7/12 extracts pertaining to the year 2006, a certificate by Tehsildar, a statement showing the agricultural income of Rs. 1.09 crore against estimated expenses of Rs. 5.19 lakhs was shown and out of that assessee's share stood at Rs. 22.70 lakh, during the assessment proceedings. However, the AO as well as the learned CIT(A) rejected the plea of the assessee on the basis that the aforesaid documents do not support the claim of the assessee since the 7/12 extract doesn't pertain to the year under consideration and the certificate issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see has claimed to have purchased various products in respect of its agricultural activity. The AO can also conduct a field visit to verify the claim of cultivation of agricultural products by the assessee. Needless to mention no order shall be passed without affording reasonable opportunity of being heard to the assessee. The assessee is also directed to furnish all the information/details as may be sought by the AO. With the above directions, we remand this issue to the file of the jurisdictional AO and set aside the impugned order on this issue. As a result, ground no. 1 raised in assessee's appeal is allowed for statistical purposes. 8. The issue arising in ground no. 2, raised in assessee's appeal, pertains to the claim of exemption u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erted into sale agreement/deed. After considering the submission of the assessee, the AO held that under section 54F of the Act, the assessee is required to purchase the new house within a period of one year before or two years after the transfer of any long-term capital asset. In the present case, the assessee sold the shop on 14/02/2011, and therefore to claim exemption under section 54F of the Act, the assessee was required to purchase the residential house by 13/02/2013. However, the assessee entered into an agreement to sale with Mrs Usha Umesh Mishra on 29/01/2011 and paid Rs. 10 lakh and the remaining amount has not been paid till 18/02/2014. Since the entire consideration has not been paid, and the agreement of sale has not been con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hase consideration of Rs. 50 lakh, the assessee has only paid Rs. 10 lakh and the balance consideration is yet to be paid. Thus by referring to the agreement to sell entered between the parties, the AO came to the conclusion that the vacant and peaceful possession of the residential house is not handed over to the assessee as full and final consideration is not paid. Accordingly, the agreement to sell is not converted into a sale deed, therefore assessee is not entitled. 12. During the hearing, in support of the claim that the assessee is the lawful owner of the flat and the share certificate by the Co-operative Housing Society has also been transferred in its name, reference was made to the copy of share certificate issued by Dheeraj Vall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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