2023 (3) TMI 97

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....was l/3rd. Hence, reasons recorded by the A.O. on barrowed information and approval given by Pr. CIT without any inquiry and of routine and mechanical manner 2. That the A.O. is in error in taking cost of acquisition as on 01-04- 1981 @ Rs. 12,000/- per bigha however, the assessee has claimed cost of acquisition @ Rs. 200/- to Rs. 225/- per sq. yd. and CIT(A) confirmed the same without considered the evidence 3. That the A.O. is in error in disallowing the Rebate U/s 54B on account of Ag. Land purchased by the assessee and CIT(A) confirmed the same without any basis 4. That the assessee rely upon Hon'ble I.T.A.T. Order of his brother Sh. Jai Prakash vide ITA No. 5456/Del/2014 who is having 1/3rd share in the prope....

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...., in the case of assessee's brother Sh. Jai Prakash who was also a co-owner in the same property was set aside by the Hon'ble Circuit Bench at Meerut to direct the assessee to file the valuation report by the authorized Valuer of the above said property and also direct the A.O. to may take the acquisition of the land as per valuation report by the authorized valuer, which were also placed on page no. 44 of the Paper Book dated 16- 01-2022, a copy of the same is being enclosed herewith. That the assessee has purchased agriculture land in the name of his wife Smt. Jagwati Devi out of sale proceeds of agriculture land of Rs. 10,81,410/- , the A.O. denied the exemption 54B of I.T. Act copy of the purchase deed was placed on page no. 30....

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.... sale of capital assets, assessee is granted deduction of cost of acquisition of that capital assets from the sale consideration. According to section 55 of the Income tax Act cost of acquisition where the capital asset became the property of the assessee before the 1st day of April,1981, means the cost of acquisition of the asset to the assessee or the fair market value of the asset on the 1st day of April, 1981 at the option of the assessee. The fair market value of the assets can be determined u/s 55A of the income tax act according to the option of AO. Therefore assessee has been given an option to get deduction of the cost of acquisition of the assets or the fair market value of the property as at 1-4- 1981 in the case assets is acquir....

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....1-4-1981 by submitting the valuation report of the property from authorized valuer not later than four months from the date of receipt of this order. After that AO may act according to the provision of section 55A of the Income tax Act and decide the issue on merits. In view of this ground no 1 of the appeal is set aside to the file of AO with above direction to consider the valuation report, if any, submitted by the assessee in above time frame. Needless to say that the AO was required to give proper opportunity of hearing and the assessee is also free to adduce the value claimed by it supported by proper valuation report in accordance with law. In view of this ground No.l is allowed with above direction. 05. Ground No.2 is agains....

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....e has come from the bank account of the assessee. Hence he submitted that assessee is eligible for deduction. 07. The Id DR relied on the order of lower authorities. 08. We have carefully considered the rival contention and found that there is no doubt that the property has been purchased by the assessee in the name of the wife of the assessee and according to the decision relied up on by the LD AR, assessee is eligible for deduction u/s 54B of the Act provided the funds from which this asset is acquired are invested by the assessee. By producing the bank account of the assessee it is apparent the cheque nos mentioned in the sale deed and the bank account are same and same has not be disputed by the Ld. DR. Hence assessee ....