Adel Saini Vs ITO (ITAT Delhi)
The Income Tax Appellate Tribunal, Delhi dismissed the assessee’s appeals for AYs 2012–13 and 2013–14 on the issue of deduction under Section 54B of the Income-tax Act, 1961. The assessee, who sold agricultural land jointly with his brothers, claimed deduction by investing his share of sale consideration in new agricultural land purchased in the name of his wife. The Assessing Officer denied the deduction on the ground that the statutory requirement under Section 54B mandates purchase by the assessee himself. The first appellate authority upheld the denial, relying on binding precedents of the Punjab & Haryana High Court. The Tribunal observed that Section 54B specifically requires the assessee to purchase agricultural land and that purchase in the spouse’s name does not satisfy this condition. Noting that the jurisdictional High Court view had been affirmed by the Supreme Court through dismissal of an SLP, the Tribunal held that no contrary view could be taken. Accordingly, the denial of deduction under Section 54B was confirmed and both appeals were dismissed.
Issue Involved:-Whether deduction under section 54B of the Income-tax Act, 1961 can be allowed when the sale consideration of agricultural land is invested in new agricultural land purchased in the name of the assessee’s wife, and not in the assessee’s own name.
