Case Law Details
Chinnappa Anthonappa Vs ACIT (ITAT Bangalore)
It is seen that the assessee has invested a sum of Rs.4.68 crores by paying advance for purchase of agricultural lands. It is not disputed that had the sale been completed pursuant to those agreements, the assessee would be entitled to benefits of deduction u/s. 54B of the Act. It is also not disputed that due to pending litigation, the sale could not be completed between these parties. However, in respect of agreement between assessee and Narayanappa & Others., the litigation has ended and assessee had got title of property on 03.07.2019, copy of the sale deed was filed before us. We are of the view that even otherwise, the assessee has complied with the conditions for grant of deduction u/s. 54B of the Act inasmuch as he has utilised, within a period of two years from the date of transfer of capital taxguru.in asset, the capital gain in purchasing another land for being used for agricultural purposes. The fact that the assessee did not get legal title to the lands is no ground to deny the benefit of deduction u/s. 54B. The decision of the Hon’ble Delhi High Court in the case of Kuldeep Singh (supra) as well as the decision of the Hon’ble High Court of Karnataka in the case of Sambandam Udaykumar (supra) clearly supports the plea of assessee. In the given facts and circumstances of the case, the assessee should be entitled to benefit of deduction u/s. 54B of the Act. We hold and direct accordingly. To the extent capital gain over and above the sum of Rs.4.68 crores excluding the stamp duty and registration fees but including the actual stamp duty and registration charges paid for acquiring title to the property from Narayanappa & Ors. vide Sale Deed dated 3.7.2019, the assessee should be allowed deduction u/s. 54B of the Act.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by the assessee is directed against the order dated 19.02.2015 of the CIT(Appeals)-4, Bangalore relating to assessment year 2010-11.
2. The issue involved in this appeal by the assessee is with regard to the validity of initiation of proceedings u/s. 147 of the Income-Tax Act, 1961 [“the Act”] with regard to allowability of assessee to exemption u/s. 54B of the Act.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
