Dinmahmad Hajibhai Momin Vs ITO (ITAT Ahmedabad)
Additional 54B Claim Supported by Evidence Must Be Examined—CIT(A) Wrongly Rejected as ‘Not in Return’; Matter Restored to AO
The Assessee did not originally file a return and was issued notice u/s 148 on 08.04.2022 on the basis of information showing property transactions aggregating ₹29.86 crore. In response, he filed a return declaring ₹2,90,63,110, comprising mainly LTCG on sale of agricultural land and claiming ₹1,66,79,520 u/s 54B for purchase of agricultural land at Shela.
During reassessment, the Assessee furnished complete documentary evidence for sale and purchase of agricultural properties and subsequently filed a revised computation dated 12.12.2023, disclosing an additional investment of ₹25,41,885 for purchase of another agricultural land at Survey No.21/1, Village Shela. Thus, total 54B claim increased to ₹1,92,21,405.
Although the revised computation and supporting evidences formed part of the record, the AO ignored the extra claim and accepted only the deduction originally claimed in the return. Assessment u/s 147 r.w.s.144B was completed on 19.02.2024.
The Assessee filed a rectification petition u/s 154, arguing that non-consideration of the additional claim was a “mistake apparent from record.” AO rejected the petition stating that the claim was not made in the return filed u/s 148 and thus cannot be admitted through section 154.
