Case Law Details
DCIT Vs Indranil Sanjaybhai Rajyaguru (ITAT Rjakot)
It is an undisputed fact that when the initial payment of Rs. 12.15 crores has been made for purchase of the new asset that too more than the amount of capital gain to the tune of Rs. 2.90 crores before the due date of filing of the return of income under Section 139(1) of the Act. Considering the CBDT’s Circular No. 471 dated 15.10.1986, Circular No. 672 dated 06.12.1993 the said to be treated as construction for the purpose of Section 54/54F. Further that considering the Circular No. 672 issued by the CBDT the said amount paid out of the net sale consideration in the original asset is required to be treated as purchase / construct. Further that though the above clarification is for Section 54F, the analogy in our considered opinion has been rightly applied by the CIT(A) in the case in hand considering the facts and circumstances therein. Hence, advance payment by the appellant to purchase agricultural land from the sale proceed of the land sold by him has been rightly found eligible for benefit under Section 54B of the Act by the Ld. CIT(A) without any ambiguity so as to warrant interference.
FULL TEXT OF THE ORDER OF ITAT RAJKOT
Both the appeals filed by the Revenue are directed against the separate orders dated 12.05.2015 & 28.07.2015 passed by the Commissioner of Income Tax (Appeals)-1, Rajkot arising out of the separate orders dated 12.03.2013 & 31.03.2014 passed by the DCIT, Circle – 1, Rajkot & ACIT, Circle-1, Rajkot under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred as to “the Act”) for the Assessment Year (A.Y.) 2010-11 & 2011-12 respectively.
ITA No. 358/Rjt/2015 (A.Y. 2010-11):-
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