2017 (2) TMI 1103

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....he case was selected for scrutiny. An assessment under Section 143(3) was completed on 06.02.2014 for the year under consideration at Rs. 1,19,11,400/- and agricultural income at Rs. 4,50,180/- and the assessing officer has disallowed the exemption of Rs. 1,19,04,165/- under Section 54B of the Income Tax Act. Against the order of assessing officer, the assessee has preferred an appeal before CIT (Appeal) and vide order dated 30.01.2015, the appeal was allowed and there was a deletion of Rs. 1,19,04,165/- on account of disallowance under Section 54B by holding that as the fund was flown from the account of assessee, it makes no difference if the assessee does not include his own name. Thereafter, an appeal was preferred before before the I....

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....lwinder Singh was bachelor and was not having any independent source of income was dependent upon his father even for livelihood. The conclusion of the learned Assessing Officer is available on page 4 of the assessment order. Before coming to a conclusion, we are supposed to analyze section 54B which is applicable where the capital gains arise from the transfer of capital asset and was being used for agriculture purposes which was invested in the purchase of any other land and again being used for agricultural purposes. There is no dispute to the fact that the assessee sold his agricultural land and then purchased other agricultural land out of the sale proceeds and got registered some portion of the land in the name of his only son who was....

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....or any other purposes or beyond the stipulated period. This fact was also not disputed that the son of the assessee was bachelor and was not having any other source of income and was totally dependent upon his father. Undisputedly, the earlier land which was sold, also belonged to the assessee and the sale proceeds were also used for purchasing agricultural land. The possession of the said land was also taken by the assessee. The only objection raised by the revenue was that the said land was registered in the name of his son. In view of these facts, it cannot be said that the capital gains! sale proceed were in any way misused for any other purposes contrary to the provisions of law." We have heard the counsel for the revenue and gone t....

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....h Court of Delhi in the case of Commissioner of Income-tax-XII vs. Kamal Wahal, reported in 2013 (30) taxmann.com 34 (Delhi). Paragraph Nos. 8, 9 and 10 of the aforesaid judgment read as under:- 8. This Court in the decision cited alone also noticed the judgment of the Madras High Court (supra) and agreed with the same, observing that though the Madras case was decided in relation to Section 54 of the Act, that Section was in pari materia with Section 54F. The judgment of the Punjab and Haryana High Court in the case of CIT Vs. Gurnam Singh : (2010) 327 ITR 278/[2008] 170 Taxman 160 in which the same view was taken with reference to Section 54F was also noticed by this Court. 9. It thus appears to us that the predominant judicial view,....