| The Tax Publishers2020 TaxPub(DT) 4618 (Pune-Trib) : (2021) 186 ITD 0309 : (2020) 208 TTJ 1005 INCOME TAX ACT, 1961
Section 54B
Where Assessee opened a bank account under the designated Capital gain account scheme on 3-8-2013 and purchased a new property on 26-8-2013 and section 54B(1) requires purchasing of new agricultural land within the period of two years from the date of sale of earlier agricultural land. Original agricultural land in this case was sold on 12-10-2011, since new agricultural land was purchased on 26-8-2013, which was well within the given period of two years from the date of transfer, therefore, AO was directed to grant the benefit under section 54B as claimed.
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Capital gains - Exemption under section 54B - Assessee not deposited the amount of capital gain in designated capital gain scheme account maintained with a bank before due date -
A survey under section 133A was carried out in the case of M/s. P in which it transpired that they had purchased a land. On perusal of 7/12 extract and Purchase Deed Agreement, it emerged that assessee was co-owner of plot transferred and had received her share of consideration amounting to Rs. 42,20,000 by cheque. Assessee filed return which was treated by AO as time barred and hence invalid. Assessee claimed exemption under section 54B towards purchase of another agricultural land. AO observed from such Purchase deed that assessee was one of purchasers of the said land. He denied the claim of exemption under section 54B on the ground that assessee did not furnish details of payment as well as capital gain scheme account maintained with a designated bank through which new agricultural land was purchased. Held: Assessee opened a bank account under the designated capital gain scheme account on 3-8-2013 and purchased a new property on 26-8-2013. If the amount is utilized within stipulated period of two/three years while depositing in capital gain account scheme, there can be no denial of exemption under section 54 because the substantial requirement of purchasing new property was satisfied. It was seen that section 54B(1) requires purchasing of new agricultural land within the period of two years from the date of sale of earlier agricultural land. Original agricultural land in this case was sold on 12-10-2011. New agricultural land was purchased on 26-8-2013, which was well within the given period of two years from the date of transfer. Therefore, AO was directed to grant the benefit under section 54B as claimed.
Distinguished:CIT v. Jagriti Aggarwal (2011) 339 ITR 610 (P&H) : 2011 TaxPub(DT) 1961 (P&H-HC), CIT v. Rajesh Kumar Jalan (2006) 286 ITR 274 (Gau) : 2006 TaxPub(DT) 1793 (Gau-HC) and Fathima Bai v. ITO (2009) 32 DTR (Karn) 243 : 2010 TaxPub(DT) 227 (Karn-HC). Followed:Venkata Dilip Kumar v. CIT (2019) 419 ITR 298 (Mad.) : 2019 TaxPub(DT) 7658 (Mad-HC), Humayun Suleman Merchant v. Chief CIT Mumbai City & Anr. (2016) 242 Taxman 189 (Bom.) : 2016 TaxPub(DT) 3850 (Bom-HC), Uddhav Krishna Bankar v. ITO [MA No.22/PUN/2019 [ITA No.617/PUN/2018], MA No.23/PUN/2019 [ITA No.618/PUN/2018], MA No.24/PUN/2019 [ITA No.619/PUN/2018], MA No.25/PUN/2019 [ITA No.620/PUN/2018], MA No.26/PUN/2019 [ITA No.621/PUN/2018], MA No.27/PUN/2019 [ITA No.622/PUN/2018], dt. 11-9-2019] Uddhav Krishna Bankar v. ITO [ITA No.617/PUN/2018, ITA No.618/PUN/2018, ITA No.619/PUN/2018, ITA No.620/PUN/2018, ITA No.621/PUN/2018 And ITA No.622/PUN/2018, dt. 31-12-2018].
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