Ranajit Suresh Rajamane Vs ITO (ITAT Pune)
No Section 69A Addition Where Sale Proceeds Invested in Agricultural Land Within Two Years; Registration Not Mandatory for Section 54B Claim if Payment and Possession Proven: ITAT; ITAT Deletes Rs. 1.14 Crore Addition After Upholding Valid 54B Investment in Agricultural Land; Delay in Sale Deed Execution Due to Seller’s Death Cannot Defeat Section 54B Relief
The appeal before the Income Tax Appellate Tribunal arose from the order of the CIT(A), NFAC, Delhi dated 26.06.2024 for A.Y. 2014-15, which had confirmed an addition of Rs. 1,14,25,000/- under Section 69A of the Income Tax Act, 1961. The addition represented 50% of the sale consideration received on sale of land, which the assessee claimed to be urban agricultural land used for agricultural purposes for at least two years prior to transfer. The land was sold on 26.03.2014 for Rs. 2,28,50,000/-, and the assessee’s 50% share amounted to Rs. 1,14,25,000/-.
The Assessing Officer initiated reassessment proceedings under Sections 147/144 after issuing notice under Section 148. The assessee had not filed a return of income for the relevant year nor responded to the notice under Section 148. During reassessment, the assessee claimed exemption under Section 54B, stating that the sale consideration had been invested in purchase of another agricultural land within the prescribed period of two years.
