TaxTMI 
TaxTMI 
2016 (7) TMI 461
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.... taxable, therefore, Assessing Officer initiated the re- assessment proceedings. The assessee has half share in the property therefore, capital gain arise on transfer of the capital asset. The assessee did not declare any capital gain in the return of income. The assessee submitted before Assessing Officer that he had invested sale proceeds in purchase of new agricultural land at Manja Shahkampur, Jagadhri and assessee had got land in the joint name of his wife. The Assessing Officer found that the aforesaid agriculture land situated at Manja Shahkampur, Jagadhri was purchased by Smt. Manjit Kaur wife of the assessee for Rs. 35,51,000/- on 15.05.2007 and not in the joint name with her husband. The Assessing Officer, therefore, was of the view that assessee is not entitled for exemption under section 54B of the Income Tax Act. The Assessing Officer distinguished the judgement of Hon'ble Punjab & Haryana High Court in the case of CIT Vs Gurnam Singh 327 ITR 278 relied upon by the assessee. The Assessing Officer relied upon judgement of Hon'ble Punjab & Haryana High Court in the case of Jai Narain V ITO 306 ITR 335 and held that assessee was not entitled for exemption under se....
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....g 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 any capital gain arising from its transfer within a period of three years of its purchase, the cost shall be reduced, by the amount of the capital gain. [(2) The amount of the capital gain which is not utilised by the assessee for the purchase of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date a....
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.... 287ITR 271 (Mad) dissented from..." 6(ii) Hon'ble Punjab & Haryana High Court in recent decision in the case of CIT V Dinesh Verma 60 Taxman.com 461 vide judgement dated 06.07.2015 considered identical issues and also considered the question No. 7 as follows : "7. Whether the respondent-assessee was entitled to the benefit under Section 54-B of the Income Tax Act, 1961 in respect of the property purchased from the sale proceeds in the name of his wife?" 7. The findings of Hon'ble Punjab & Haryana High Court in paras 16 to 20 read as under : Re: Questions No. 4 and 7. the additional question raised by our order dated 02.03.2015. 16. Question No.4 must be answered in favour of the appellant. As we mentioned earlier, the respondent sold his agricultural land for a sum of Rs. 60,00,000/-. Out of the sale proceeds he invested only a sum of Rs. 44,76,000/- towards the purchase of another agricultural plot. The balance consideration of Rs. 16,84,000/- in respect of that plot was paid by the respondent's wife. It is not the respondent's case that it is actually he who paid the amount of Rs. 16,84,700/- and that his wife's name ....
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....ich necessarily means that the new asset which is purchased has to be in the name of the assessee himself for seeking exemption under section 54B of the Act. The purchase of agricultural land by the assessee in his son or grandson's name, therefore, cannot be held entitled to exemption under section 54B of the Act. 11. We may make a brief reference to the decision relied upon by counsel for the assessee. Learned counsel mainly relied upon the decision in V. Natarajan [2006] 287 ITR271 (Mad), with reference to section 54 of the Act. 12. The Madras High Court in V. Natarajan's case [20061 287 ITR 271 was dealing with a case relating to section 54 of the act wherein the assessee who after selling his residential house had purchased another residential house in his wife's name, the court had concluded that the assessee in such circumstances was entitled to exemption under section 54 of the Act. After giving our thoughtful consideration, we are unable to accept the view as laid down in V. Natarajan's case [20061 287 ITR 271 (Mad).' Thus, even assuming that the assessee had invested the said amount of Rs. 16,84,700/- in the name of his wife,....