2010 (11) TMI 235

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....96-97, claiming following substantial question of law:-   "Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was right in law in holding that the provisions of section 54B is applicable to the cases other than the individuals?"   2. Briefly stated, the facts necessary for adjudication as narrated in the appeal are that the assessee filed his return for the assessment year 1996-97 declaring an income of Rs.63,240/- for bank interest only. The case of the assessee was processed and on coming to know that the assessee had wrongly computed the capital gains on the sale of the agricultural land, the Assessing Officer issued notice under Section 148 of the Income Tax Act, 1961 (in short "the Act") on 1.12....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e heard learned counsel for the parties.   4. Learned counsel for the revenue argued that the assessee is a HUF and, therefore, the exemption as claimed by it under Section 54B(1) of the Act was not admissible. She submitted that wherever the legislature intended to grant benefit to Hindu Undivided Families, it had specifically provided for the same in the provision. She drew attention of the Court to Section 54 (1) of the Act where the same has been specifically provided. On the strength of the aforesaid submission, it was contended that the Tribunal was in error in granting the benefit of exemption under Section 54B (1) of the Act to the assessee. She placed reliance on the judgments of the Madras High Court in Commissioner of Inc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... with the following provisions of this section, that is to say,-   (i) if the amount of the capital gain is greater than the cost of the land so purchased (hereinafter referred to as the new asset), the difference between the amount of the capital gain and the cost of the new asset shall be charged under section 45 as the income of the previous year; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase, the cost shall be nil; or (ii) if the amount of the capital gain is equal to or less than the cost of the new asset, the capital gain shall not be charged under section 45; and for the purpose of computing in respect of the new asset ....