Case Law Details
Shri Surta Ram Vs ITO (ITAT Chandigarh)
ITAT Chandigarh held that exemption under section 54B of the Income Tax Act is not available when property was not purchased in the name of the assessee.
Facts- During the year under consideration, the assessee had sold urban agricultural land for a sum of Rs.49,60,000/-, earning a Long Term Capital Gain of Rs.46,93,099/-. The Long Term Capital Gain was invested by the assessee in the purchase of another agricultural land, for Rs.55,49,242/-, including Stamp Duty and Registration Charges, in the name of his wife. The assessee claimed exemption u/s 54B of the Income Tax Act. The Assessing Officer (AO), however, refused to allow the claim made.
AO held that if the subsequent property is purchased by a person other than the assessee, including his close relative, even his wife and children, the assessee would not be entitled to the benefit conferred by the provisions of Section 54B of the Income Tax Act. Accordingly, the AO made addition of Rs.46,93,099/- to the income of the assessee.
On appeal, by virtue of the impugned order, the ld. CIT(A) has dismissed the assessee’s appeal. Aggrieved, the assessee is in further appeal.
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