Case Law Details
Shri Ramanbhai Bholidas Patel Vs Principal Commissioner of Income Tax-3 (ITAT Ahmedabad)
ITAT Ahmedabad held that invocation of provisions of section 263 of the Income Tax Act justified as AO allowed deduction u/s 54B without necessary inquiry about applicability of the same.
Facts-
On scrutiny of the assessment records by the Ld. PCIT, it is noticed that the assessee has shown Long Term Capital Gain of Rs. 80,21,324/- and Rs. 15,92,194/- on sale of land. On further verification of the sale deed, assessee’s share being 15% in the above property is Rs. 1.05 crores. Subsequently appellant purchased another agricultural land vide purchase deed dated 04.04.20 15 for an amount of Rs. 17,82,00,300/- and appellant’s share being 15 per cent comes to Rs. 2,67,30,045/-. The assessee claimed of exemption u/s. 54B of Rs. 96,13,518/- from the above Long Term Capital Gain and reinvested in another agricultural land. However it is noticed that the said land sold was not used for agricultural purpose during the financial years 2013-14 & 2014-15 and the assessee has not shown any agricultural income from the above land. Thus the conditions envisaged for claiming exemption u/s. 54B of the Act are not fulfilled by the assessee, thereby the assessee is not eligible for exemption u/s. 54B of the Act.
Conclusion-
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