TaxTMI 
TaxTMI 
2016 (10) TMI 1284
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.... Registrar) on sound basis. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) is not justified in accepting the additional evidence as during assessment proceedings sufficient apportunities were provided by the AO to assessee who did not discharge the onus to provide the Fair Market Value as on 01.04.1981 from authentic/appropriate authority. 3. On the facts and in the circumstances of the case, the Ld. CTT(A) has erred in accepting the view of Sub Registrar that the Market Rate of Agricultural Land would be at four times of the collector rate as this is not basis for this estimate. Sub-Registrar was supposed to give Fair Market Value based on comparable instance or other revenue records maintained in his office. No supporting evidences were made available by the Sub Registrar to prove the basis on which the Market Valuation of land in question has been arrived at Rs. 10,45,000/- (@Rs. 8 Lacs per acre) 4. The Appellant craves leave to add or amend the grounds of appeal before the appeal is heard and disposed off." 2. The grounds of appeal raised by the assessee in ITA No. 3543/Del/2012 are as under: "That on the facts and in the circumstances of the ....
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....ture land. 3.2 After taking into consideration the submission of the assessee, the Assessing Officer held that the amount of capital gain arising out of the transfer of agricultural was not invested in the purchase of the new agricultural land and, therefore, assessee was not allowed the claim of deduction under section 54B of the Act. 3.3 The Assessing Officer asked for evidence in support of cost of acquisition of the transferred agriculture land or its fair market value as on 01.04.1981 for computing the capital gains, however, in absence of any reply from the assessee, the Assessing Officer computed the cost of acquisition as nil and computed the capital gain from the transfer of agriculture land as follows: Sale price of agricultural land : Rs. 60, 89, 903/- less: cost of acquisition : Rs. Nil long-term capital gains : Rs. 60, 89, 903/- 3.4 Aggrieved with the order of the Assessing Officer, the assessee filed appeal before the learned Commissioner of Income-tax (Appeals) and filed the certificate from the 'Tehsildar' in support of the fair market value of the transferred agricultural land as 01/04/1981, as additional evidence in terms of Rule 46A of the Income Tax Rul....
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....not provided sufficient opportunity by the Assessing Officer for submitting the evidence in support of fair market value of the transferred agricultural land and, therefore, the learned Commissioner of Income Tax (Appeals) has validly accepted the additional evidences produced by the assessee. He further said that those additional evidences were forwarded to the Assessing Officer for his comments and after taking into his comments, the learned Commissioner of Income-tax (Appeals) has agreed with the contention of the assessee of having fair market value of the transferred agricultural land at Rs. 10,45,000/- and accordingly, he directed the Assessing Officer to compute the capital gain. Accordingly, he prayed that finding of the learned Commissioner of Income-tax (Appeals) on the issue in dispute might be upheld. 5.3 We have heard the rival submission and perused the material on record, including the paper book filed by the assessee. We find from the ground No. 2 taken by the Revenue that the Revenue has objected to the additional evidences admitted by the learned Commissioner of Income-tax (Appeals) in respect of fair market value of the land in question as on 01/04/1981. From th....
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....cted in the year 1977 at Rs. 1,42,222/- per acre and taking 10% increase per year, it comes to Rs. 2,08,225/- per acre in the year 1981. Generally, the market rate is about 4 times the Collector rate and therefore FMV comes to Rs. 8.00 lacs per acre in 1981. Further, local enquiries aloso confirm the above position." 8. On the perusal of the said certificate of the Tehsildar and subsequent explanation given to the Assessing Officer, we find that there is no basis for estimation of the fair market value in the report of the Tehsildar. We find that the Tehsildar has provided sale instance of 1977 and on the basis, he arrived the rate for the year 1981 at Rs. 2,08,225/- per acre. But thereafter, he mentioned that generally the market rate was four times the rate adopted by the Collector for stamp duty purpose and, therefore, the market value of the land in question should be Rs. 8.00 lacs per acre. We find that the Tehsildar has not provided any basis for taking four times of the stamp duty value as the fair market value of the land in question. Thus, the fair market value of Rs. 10,45,000/- as on 01/04/1981 stated by the Tehsildar is not based on value adopted by his office for the....
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.... on 03/06/2008, a cheque amounting to Rs. 60 Lacs was received by one of the co-owner of the property, in part performance of the contract of the nature referred in Section 53A of the Transfer of Property Act, 1882 and, hence the capital gain in the case of the assessee has arisen on 03/06/2008 i.e. the date of transfer of the property within the meaning of section 2(47)(V) of the Act and therefore the assessee should be allowed deduction under section 54B of the Act. 14. We have heard the rival submission and perused the relevant material on record. On perusal of the submissions of the parties, it is evident that the sale consideration on transfer of the asset was received by the assessee on 24/10/ 2008 and investment in the new agricultural land was made on 13/10/2008 and 23/10/2008, which is prior to the receipt of sale consideration and, therefore, the money received on account of capital gains has not been utilized towards purchase of new asset. It is relevant to reproduce the section 54B of the Act as under : "Capital gain on transfer of land used for agricultural purposes not to be charged in certain cases. 54B. (1) Subject to the provisions of sub-section (2), where t....
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....he cost of the new asset : Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase of the new asset within the period specified in sub-section (1), then,- (i) the amount not so utilised shall be charged under section 45 as the income of the previous year in which the period of two years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid. 15. We find from the plain language of section 54B of the Act that benefit under section would be allowed when the capital gain arising on transfer of land used for agricultural purposes, is invested in the purchase of new agricultural land within two years from the date of the agricultural land transferred. Thus, the thrust is on the utilization of the money received on sale of the agricultural land leading to capital gain towards purchase of new agricultural land. The learned Commissioner of Income-tax (Appeals) has decided the issue in dispute as under: "7. The denial of exemption u/s 54B was contested in grounds no. 3 to 6 of appeal. The submissions made by the AR i....