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TMI Blog2025 (3) TMI 1427X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial on record. 3. Hon'ble CIT (A) has erred in confirming the addition made by the ld. AO amounting to Rs. 1,85,53,892/- to his declared total income of Rs. 2,81,335/-. 4. Hon'ble CIT (A) has erred in making addition amounting to Rs. 5,98,73,460/- to the previous assessment income by the ld. AO by limiting the deduction u/s 54F of the Income Tax Act, 1961. 5. Hon'ble CIT (A) has grossly erred in initiating penalty u/s 271(1)(c) of the Income Tax Act, 1961." 3. The assessee has also taken the following additional grounds of appeal :- "The following ground of appeal is independent of, and without prejudice to, the original ground(s) of appeal- The CIT(A) erred in assessing the entire capital gains (long-term) on sale of agricultural land (inherited from late father of the appellant), in the hands of the appellant as against assessing only one-half of the capital gains. being his share in the said agricultural land. The appellant contends that on the facts and in the circumstances of the case and in law. The CIT(A) ought to have accepted that the capital gains (long-term) in the case of the appellant ought to have been taxed only in respect of the appellant's shar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as on 01.04.1981. 7,245/- X Rs. 20/- = Rs. 1,44,900/- Indexed cost of acquisition : 1,44,900X1024/100 = Rs. 14,83,776/- Sale consideration received by the assessee Rs.19,00,00,000/- Less : Indexed cost of acquisition as worked out above. Rs. 14,83,776/- Income from Long Term Capital Gains Rs.18,85,16,224/- 8. Aggrieved with the above order, assessee preferred an appeal before the ld. CIT(A) and ld. CIT (A), after considering the submissions of the assessee, rejected the same with the observation that the assessee failed to substantiate the applicability of the facts and circumstances of his case, as matter before the Hon'ble Supreme Court was pertaining to compulsory acquisition by the competent Development Authority, whereas assessee has sold the land to a builder. Therefore, the contention of the assessee is found non-maintainable. 9. Aggrieved with the above order, assessee is in appeal before us. 10. At the time of hearing, ld. AR of the assessee resubmitted the same facts before us and submitted that ld. CIT (A) has dismissed the appeal of the assessee on the basis of the land so sold by the assessee to the builder and the facts of Hon'ble Supreme Court are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50/- (i.e. Rs. 85 / 57 x 100). Therefore even though the cost of acquisition determined by Hon'ble Supreme Court for compulsory acquisition, however the rate determined by Hon'ble Supreme Court for the lands within the vicinity of the lands of the assessee. Therefore, nothing wrong in adopting the same rate as on 1962. We are inclined to direct the Assessing Officer to determine the value of Rs. 150 as on 01.04.1981 and direct the Assessing Officer to recalculate the index cost of acquisition and allow the difference. 13. In the result, ground no.2 raised by the assessee is partly allowed. 14. Coming to ground no.3 and additional grounds raised by the assessee which are inter-connected, the relevant facts are, against the long term capital gain of Rs. 18,85,16,224/-, the assessee has claimed deduction u/s 54F of the Act on purchase of one house in the name of his widow mother situated at C-20, Lohia Nagar, Ghaziabad for Rs. 4,54,67,440/-and investment towards construction of Rs. 1,40,63,196/-, the total amount comes to Rs. 5,95,30,636/- which was claimed as deduction. The assessee also claimed deduction u/s 54F for purchase and construction of house of R-13/72, Raj Nagar, Ghaziab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the womb of the mother is given below - "Right to Child in womb- A child who was in the womb at the time of the death of an intestate and who is subsequently born alive shall have the same right to inherit to the intestate as if he or she had been born before the death of the intestate, and the inheritance shall be deemed to vest in such a case with effect from the date of the death of the intestate." * Thus, in view of section 20 of the Hindu Succession Act, the assessee is entitled to a share in the property of the father, who died intestate, and the share will be one-half to both, the assessee and the mother of the assessee. * On a query from the Honourable Bench it was clarified that section 171 of the U.P. Zamindari Abolition Act Land Reforms Act, 1950 has no application as there is no provision for inheritance of a child in the womb of the mother at the time of the father dying intestate, and hence, the general law of section 20 of the Hindu Succession Act would apply. * It would not be out be out of place to mention that the mother of the assessee has not filed her return of income, on the understanding that the investment in residential property to claim deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action please. 19. Ld. DR heavily relied on the above submissions and relied on the findings of the lower authorities. 20. Considered the rival submissions and material available on record. We observed that this is a peculiar case wherein father of the assessee was the owner of the agricultural land which was sold by the assessee owning the whole property in his own name and executed all the documents as if he has inherited the whole property. It is brought to our notice that father of the assessee was deceased on 15.04.1992 before the birth of the assessee. As per section 20 of the Hindu Succession Act, the right of the unborn child shall have the same right to inherit to the intestate as if he or she had been born before the death of the intestate and the inheritance shall be deemed to vest in such a case w.e.f. from the date of the death of the intestate. Therefore, from the facts available on record, we observed that the land belongs to father of the assessee and after his demise, the whole property should have been inherited by widow mother and the assessee. Since assessee has owned the whole property and sold the lands and purchased two properties, one in the name of his mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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