TaxTMI 
TaxTMI 
TaxTMI 
2019 (9) TMI 552
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....) is not attracted. (ii) The provision of section 56(2)(vii)(b)(ii) are introduced w.e.f. 01.04.2014 whereby said section apply to transactions of transfer/purchases w.e.f. 01.04.2014 & not to transaction entered in F.Y. 2013-14 (01.04.2013 To 31.03.2014). 2) Without prejudice to the above learned CIT(A) has erred in not allowing the enhanced cost u/s 50C r.w.s. 56(2)(vii)(b)(ii) which is available for set off u/s 54B r.w.s. 49(4) against sale of agri. Land. 3) The Agri. Land bearing Block No. 143 (Khata No. 138) purchased on 28.07.2014 (A.Y. 2015-16) do not fall in A.Y. 2014-15 whereby A.O. had erred in applying provisions of Sec 56(2)(vii)(b)(ii) r.w.s 50C of the Act." 3. Briefly stated, the assessee filed its return of income for AY 2014-15 which was subjected to scrutiny assessment. In the course of scrutiny assessment, the AO noticed that the assessee has purchased certain land parcels below stamp duty valuation rate. The AO accordingly replaced the stamp duty valuation rate for the purposes of determination of purchase consideration by applying provisions of Section 56(vii)(b) of the Act as tabulated in para 3 of the assessment order. 4. Aggrieved, the assessee prefer....
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.... section 49(4) read with section 54B of the Income Tax Act, 1961. The appellant would like to reproduce the section 49(4) for the ready reference of your honor. "49(4) Where the capital gain arises from the transfer of a property, the value of which has beer, subject to income-tax under clause (vii) [or clause (viia)] of sub section (2) of section 56, the cost of acquisition of such property shall be deemed to be the value which has been taken into account for the purposes of the said clause (vii) [or clause (viia)]" iii. The appellant submits that it is clearly understood from the aforesaid provisions of the Act that it is not required to claim exemption under section 54B in income tax return itself but exemption is direct and having clear linkage with total cost of asset. The AO had never challenged the facts of deeming fiction of 49(4) in its reasoning of rejection of difference claim of section 54B of the Act, being ground no.2; iv. The assessee submits that it is important to note here that the AO had never challenged above facts and the stand taken by the appellant in its entire body of the assessment order. The assessee further submits that it is clear from the law tha....
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....tted addition u/s 56 and therefore, the appellant would require to pay tax on additional amount and capital gain tax on the same value again if contention of the appellant is not accepted by your honor. The appellant therefore request your honor that the appeal may please be allowed on the merits of the case. 2.3. The second submission of the appellant dated 08/09/2017 before CIT(A) in this regard is as under:- a. The Appellant is in appeal against the order passed unde, section 143(3) of the Act by income tax Officer. Ward-1 (1)(1). Ahmedabad (the AO), in respect of A.Y. 2014-15 Vide this order, he has made addition of Rs. 9,50,946/- to the returned income of Rs. 20,29,270/- for the reasons as specified in the body of the order. The Appellant had never challenged this addition but the AO had rejected the additional claim of exemption u/s 54B of the Act and therefore, the appellant is in appeal before your honor. The appellant herewith make additional written submission on legal aspects as required by your honor. The arguments made under different propositions were already made under previous written submissions. The appellant herewith provide comparative statement of total inc....
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.... TDS On Transfer Of Immovable Property (418470) (418470) Tax Refundable (41640) (1761) c. In view of the above arguments, the appellant therefore request your honor that the appeal may please be allowed on the merits of the case". 2.3. I have given careful consideration to the appellant's written submission and also carefully gone through the assessment order. On perusal of the details submitted during the course of the assessment proceedings it is seen that the assesses has purchased immovable property being agriculture land below the Jantri Rate. In view of the above, amount of Rs. 9,50.946/-(share of the appellant) was required to be taxed u/s.56(vii)(b) of the Income tax Act, 1961 under the head income from other source. The Appellant had never challenged this addition but the AO had rejected the additional claim of exemption u/s 54B of the Act and therefore, the appellant is in appeal. The Appellant had argued that the addition under section 56(2)(vii) would have direct linkage with cost of asset and therefore the exemption claim under section 54B of the Income Tax Act, against land sold would be increased to that extent as per ....
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....ed before the lower authorities and the issue involves examination of factual aspect. We are not inclined for admission of the additional evidence requiring factual verifications at this belated stage after lapse of more than 5 years. Therefore, we decline to entertain the additional evidences. 8. Continuing further, the learned AR for the assessee pointed out that provisions of Section 56(2)(vii)(b)(ii) of the Act has come into play w.e.f. 01.04.2014 and would therefore apply to the transactions which have occurred after that date only as the amendment is prospective in nature. The learned AR also submitted that Section 49(4) of the Act does not require transfer of the same property for the purpose of claim of deduction under s.54B of the Act. The learned AR next pointed out that a part of the agricultural land was purchased in July 2014 concerning AY 2015-16 and therefore would not be subject matter of assessment for AY 2014-15. 9. The learned DR for the Revenue relied upon the order of the CIT(A). 10. We have carefully considered the rival submissions. The taxability of deemed income under s.56(2)(vii)(b)(ii) of the Act is in question. The AO has applied the aforesaid provis....