Raju Lal Jalthaniya Vs ITO (ITAT Jaipur)
Investment in Wife’s Name Eligible for S.54B Relief – ITAT Jaipur Directs AO to Finalize Income as per Remand Report-CIT(A) Erred in Remanding Despite Remand Report – ITAT Jaipur Decides on Merits & Grants S.54B Relief
Assessee sold land at Bindayaka, Jaipur for ₹79.55 lakh & did not file a return. Assessment was completed ex parte u/s 144 r.w.s 147, taxing ¼ share (₹19.88 lakh) as undisclosed capital gain based on DLC value u/s 50C.
In appeal, CIT(A)-NFAC accepted that the order was passed ex parte but, invoking powers u/s 251(1)(a), set aside the assessment for fresh examination by AO, despite the remand report already on record which had accepted most issues in Assessee’s favour.
Before Tribunal, Assessee argued that CIT(A) mechanically remanded the matter instead of deciding it on merits, as the remand report itself quantified taxable income at ₹4.62 lakh after allowing relief u/s 54F & that deduction u/s 54B should be allowed though investment was made in the name of his wife.
Tribunal observed that once the remand report had already examined facts in detail & quantified income, CIT(A) ought to have decided the appeal instead of remanding the matter again.
