Sita Jain & Ors. Vs. ACIT & Anr. (ITAT Delhi) – We have duly considered the rival contention and gone through the record carefully. The Hon’ble Punjab & Haryana High Court in the subsequent decision has upheld grant of exemption u/s 54B in a case where land was purchased in the joint name. The ITAT had discussed this issue in the case of Smt. Saraswati Swaminathan reported in 116 ITD 234 and has observed that the object of section 54EC is to utilize the sale proceed of long term capital gain in the purchase of specified bonds.
The Tribunal has considered the scheme of such investment in paragraph 3 and thereafter upheld the allowance of exemption u!s 54EC. The third circumstance which goad us not to interfere in the order of Ld. CIT(A) is the letter dated 11th May, 2011 whereby REC Ltd. had given a clarification regarding joint holding of REC bonds. The corporation has pointed out that second and third holder is only for succession purpose in case of death of first holder. The cumulative setting of all these three factors persuade us not to take a different opinion than the one taken by the Ld. CIT(A). In view of the above discussion, we do not find any merit in this appeal of the revenue.
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘E’ NEW DELHI
I.T.A No. 4754/Del/10
Asst. Year – 2007-08
Sita Jain Vs. ACIT,
I.T.A No. 4755/Del/10
Asstt. Year – 2007-08
M.P. Jain Vs. ACIT,
I.T.A No. 5036/Del/1 0
Asst. Year – 2007-08
Asst. Commissioner of Vs. Shri Mahavir Prasad Jain,
ORDER
PER RAJPAL YADAV, JM:
ITA No. 4755/Del/1 0 and ITA No. 5036/Del/1 0, are the cross appeals at the instance of respective parties against the order of Ld. CIT(A) dated 15th September, 2010 passed in asstt. year 2007-08 whereas ITA No. 4754/Del/10 is directed at the instance of assessee against the separate order of Ld. CIT(A) dated 15th September, 2010 in asstt. year 2007-08. The issues agitated in all the appeals are interconnected to each other, therefore, we heard them together and deem it appropriate to dispose off to them by this common order. Ld. Representatives have argued the appeal of Smt. Sita Jain substantially. Therefore, for the facility of reference, we are taking up the facts mainly from this appeal i.e. 4754/Del/10.
2. In ground No. 1 , assessee has pleaded that order passed by the Ld. CIT(A) is not sustainable in the eyes of law. It is general ground of appeal and no arguments were advanced by the Ld. Counsel for the assessee. Hence, it is rejected.
3. In ground No. 2, the assessee has pleaded that notice u/s 143(2) has been served after a period of one year from the end of the month in which the return was filed. Therefore, asstt. order is not sustainable in law. Ld. Counsel for the assessee, however, did not press this ground of appeal and it is rejected.
4. In ground No. 3 the appeal assessee has pleaded that Ld. CIT(A) has erred in confirming the dis allowance of Rs. 13,75,000/- which was disallowed by the AO out of the claim made u/s 54B of the Income Tax Act.
5. The brief facts of the case are that assessee is a senior citizen and has shown income form the interest derivatives and agricultural land. She has filed her return of income on 28.7.2007 declaring an income of Rs. 55,40,225/- which include agricultural income of Rs. 2,21,936/-. On scrutiny of the accounts, it revealed to the AO that assessee had purchased agricultural land for a consideration of Rs. 1,30,840/- on 7th April, 1994 at Indore. She has sold this land vide registered sale deed bearing No. 8438, executed on 1 9th March, 2007, for a consideration of Rs. 81,50,000/- The assessee has declared capital gain of Rs. 78,87,887/-. She had claimed exemption u/s 54B and 54F of the Income Tax. While making the claim u/s 54B of the Income Tax Act, she contended that an agricultural land for a consideration of Rs. 31,84,845/- has been purchased at Indore vide purchase deed No. 6590 dated 20th March, 2007.
6. Ld. AO had noticed payments received by the assessee towards sale of agricultural land and paid by assessee towards purchase of agricultural land, which read as under :-
