Jobanji Thakor Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that exemption u/s. 54F and 54B of the Income Tax Act cannot be denied solely on the ground of non-adherence to strict time limits. Accordingly, the assessee is entitled to claim the deduction in respect of investments made beyond the prescribed time period.
Facts- The assessee computed Long Term Capital Gain (LTCG) at Rs.1,15,37,248/- and claimed deductions under Sections 54B and 54F of the Act aggregating to Rs.1,12,19,000/-.
AO raised specific queries regarding the basis of the deductions claimed, particularly on the grounds that the assessee had not furnished any proof in support of the cost of acquisition or the cost of transfer. Further, the AO noted that the assessee had claimed Rs.1,12,19,000/- as a deduction u/s. 54B of the Act, which pertained to the purchase of agricultural land. However, upon verification, it was found that certain purchases were made beyond the prescribed time limit and that the investment was made in the name of another person, namely the assessee’s brother, Shri Baldevji Ramaji Thakor. Additionally, the AO observed that the assessee had claimed Rs.5,91,036/- u/s. 54F of the Act in respect of investment in a residential property. However, the transaction in question was executed beyond the permissible time limit, rendering the claim ineligible.
