Phool Singh Vs ITO (ITAT Delhi)
ITAT Delhi held that denial of exemption under section 54B of the Income Tax Act for purchase of agricultural land in the name wife of the assessee is not justifiable. Accordingly, denial of benefit of deduction set aside.
Facts- During the year under consideration, assessee had sold land for Rs.4,31,25,000/- on 27.12.2012 which resulted into Long Term Capital Gain (LTCG) amounting to Rs.4,22,73,000/- and received pension amounting to Rs.2,32,059/- and interest amounting to Rs.2,32,059/-, however, assessee did not file his return of income. In compliance with the notice issued u/s. 148, assessee filed return of income on 29.06.2017 declaring income of Rs.3,82,020/- and claimed deduction u/s. 54F of the Act amounting to Rs.1,14,39,350/- and u/s. 54B of the Act amounting to Rs.3,08,33,650/-. On completion of assessment proceedings, additions of Rs.1,14,39,350/-, Rs.3,08,33,650/- and Rs.40,00,000/- were made by AO. CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that in view of the well settled principle of law, the assessee having purchased agricultural land was eligible for deduction under section 54B of the Act. Therefore, the findings of learned CIT(A) denying benefit of deduction under section 54F of the Act, is set aside.
