TaxTMI 
TaxTMI 
2019 (8) TMI 1453
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.... this consolidated order. In both the appeals, the disputed issues relate to the provision u/s 54 of the Income Tax Act, 1961 ("Act"). In both the appeals, the grounds of appeals are similarly worded. In the case of Late Sh. Ram Sarup assessment order u/s 147/143(3) of the Act was passed on 26.03.2015 wherein addition of Rs. 86,02,120/- was made towards Long term Capital Gain ("LTCG"). Similarly, in the case of Sh. Rohtas Singh assessment order u/s 143(3)/147 was passed on 27.03.2015 wherein an addition of Rs. 1,42,91,610/- was made on account of LTCG. The relevant portions from two assessment orders are reproduced as under:- ITA No:- 6390/Del/2016 [In the case of Sh. Rohtas Singh] (Assessment Year: 2007-08) The notice ....
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....not filed his return of income. I have therefore, reasons to believe that long term capital gain on sale of above land has escaped assessment for the A. Y. 2007-08 and liable to tax. " 3. Since the land sold by the assessee falls within Municipal Limit, the assessee required to explain as why the Long Term Capital Gain may not be charged on Rs. 3,33,89,500/- as discussed above. Assessee has filed reply on 09.05.2014, 16.06.2014, 06,07,2014 and 18.03.2015 along copy of registration deeds and valuation report from the Govt. Approved valuer and explained that he has purchased agricultural land of Rs. 1,43,30,500/- in the name of his spouse (Smt.Saraswati Devi) and agricultural land of Rs. 96,02,000/- in his name and purchased....
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....and in the name of his spouse (Smt.Saraswati Devi) is rejected. Therefore, keeping in view the above facts and circumstances of the case, the exemption u/s 54B of the I.T.Act, 1961 on investment in agricultural land of Rs. 96,02,000/- in the name of the assessee is allowed and investment on purchase of plot of Rs. 10,60,000/- and on construction of residential house spending at Rs. 95,16,000/- totaling Rs. 1,08,76,000/- made by the assessee on which deduction u/s 54F is allowable at Rs. 94,75,890 as per the following calculations:- The exemption u/s 54 F is worked out as under:- = Long term capital gain x Amount invested in new house Net sale consideration = 33369500 X 1,08,76,000/3,83,00....
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....hana was approx. Rs. 1,00,000/- per acre in the year 198182. Accordingly the cost of acquisition of the land in question measuring 6 Acre 6 Kanal 13 Merlas in village Uchana works out to Rs. 7,00,000/-. Hence, the indexed cost of acquisition works out to Rs. 36,33,000/-. Thus, the LTCG works out to Rs. 1,75,43,875/(2,l1,76,875/- minus 36,33,000/-). Thus, Capital Gain amounting to Rs. 1,75,43,875/- has escaped assessment for the A.Y. 2007-08. Therefore, there is lapse on the part of the assessee to disclose fully and truly all material facts and information relating to sale of land at Rs. 2,11,76,875/- which caused escapement of long term capital gain of Rs. 1,75,43,875/- on sale of land as he has not filed his return of income. ....
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.... name of spouses of legal heirs is rejected. Further, it is explained that the legal heirs constructed residential houses in the year 2007-08 for Rs. 1,08,45,000/- in the name of all four legal heirs. In support valuation reports of approved valuer are submitted. Assessee has, thus claimed exemption u/s 54F for Rs. 1,08,45,000/-. However, the exemption u/s 54F on construction of residential house works out to Rs. 90,29,337/- as per the provisions of section 54F as following Amount invested in residential house X Capital Gain Sale Consideration =1,08,45,000 X 1,76,31,457 = Rs. 90,29,337 2,11,76,875 Therefore, the exemption 54F on investment in construction of residential house of Rs.....