Zahid Hasan Khan Vs ITO (ITAT Chandigarh)
ITAT Chandigarh held that deduction u/s 54B of the Income Tax Act, 1961 is not admissible if the new capital asset i.e. agriculture land is purchased in the name of wife of the assessee. Accordingly, appeal of assessee partly allowed.
Facts- Assessee sold land and the same, as per AO, is covered within the ambit of capital assets as per the provision of Section 2(14) as the distance of land sold by the assessee in Village Kansapur falls within 8 Km from the municipal limit of Jagadhri. Thus, AO determined the long term capital gains and held that income to the extent of Rs. 2,49,21,043/- has escaped assessment and since the assessee did not file any return of income, the reasons were recorded and notices u/s 148 were issued to the assessee, however, there was no compliance on the part of the assessee in response to the notices so issued from time to time. Thereafter AO proceeded and completed the assessment u/s. 144 bringing to tax Long Term Capital Gain (LTCG) amounting to Rs. 2,49,21,043/- in the hands of the assessee.
Being aggrieved, the assessee carried the matter in appeal before CIT(A), who after taking under consideration the submissions filed by the assessee and after calling for the Remand Report and the rejoinder filed by the assessee, has sustained the findings of the AO as far as the computation of capital gains amounting to Rs. 2,49,21,040/- is concerned. Further, regarding the claim of exemption u/s. 54B and 54F made for the first time during the appellate proceedings, CIT(A) has stated that the same cannot be entertained in absence of valid return of income having ever been filed by the assessee.
