2023 (5) TMI 118

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....of the I.T. Act 1961. 2. On the facts and circumstances of the case as well as law on the subject the learned Commissioner of Income Tax(Appeals), National Faceless Appeal Centre has erred in confirming the action of assessing office in disallowing exemption of Rs.22,54,910/- claimed by the assessee u/s 54B of the I.T. Act, 1961. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 2. Perusal of record shows that NFAC/Ld. CIT(A) passed impugned order on 08.12.2021, however, this appeal was filed before Tribunal on 08.03.2022, the registry has calculated delay of 30 days in filing appeal. The assessee has filed his application for condonation such delay. The Ld. Authorized Representative (Ld.AR) for the assessee submits that the order of NFAC/Ld. CIT(A) was not received by assessee and the assessee was not aware about passing of said impugned order though the assessee has given e-mail portal in Form-35 (Appeal Form before Ld. CIT(A). the assessee came to know about passing of the impugned order in second week of January 2022 and immediately downloaded the copy of order and filed appeal. Thus, t....

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....54B, the assessee or his specified persons referred in Section 54B is required to carry out agricultural activities on the land sold as well as on newly purchased land. The Assessing Officer asked the assessee to substantiate such claim and noted that as has given only expenses for agricultural expenditure but no other supporting evidence was furnished. The Assessing Officer issued a show cause notice vide order-sheet entry dated 07.12.2017. The assessee filed his reply vide reply dated 12.12.2017 and contended therein that he sold ancestral agricultural land, which was used for agricultural purposes for his family members. The land was jointly hold by all his family members, bills of agricultural produce were not in the exclusively name of assessee, although copy of bills available with assessee were furnished. For purchase of agricultural land, the assessee submitted that the said land is used subsequently for agricultural purposes. The assessee is a small farmer and it is not always maintained that agricultural produce was sold to Co-Operative Societies or through organised market but sometimes agricultural yield, which sold to individual person also, who take away agricultural ....

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....ven the details of agricultural land purchased on sale of ancestral property existing in the following manner: Sr. No. Description of property Date of purchase Share of assessee Cost to assessee 1 Block No.1213, Moje Variav, Tal. Surat, City Surat 28/02/2014 10% 16,95,000/- 2 Agricultural land R.S. No.724, Block No.1469 Moje Talsana Gam, Dist. Surendarnagar 11/02/2015 100% 6,40,000/- 3 Agriculture land bearing survey No.203, Paiki 1/3, Moje Monpar, Tal Mahua, Dist. Bhavnagar 24/08/2015 25% 42,750/- 4 Agricultural land R.S. No.13/3 paiki-1, Block No.48,Moje Talsana Gam, Tal Laktar, Dist. Surendarnagar 22/05/2015 100% 5,85,260/- 8. The assessee also furnished copy of purchase deed and submitted that the Assessing Officer disallowed the claim of assessee under section 54B on various reasons. On the objection that no details were furnished about agricultural activities, the assessee stated that the assessing officer in para 5.1 has admitted that one of the bill is in the name of Chhaganbhai, who is the co-owner and is party to the sale deed, which itself proves the agriculture activities. The land records cle....

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....stigated the fact, except doubting the explanations and the evidence filed by the assessee. The assessee invested the capital gain with the extended time prescribed under section 139(4). The dates of purchase of new agriculture are not in dispute, the assessee explained the entire facts before ld CIT(A). The ld CIT(A) instead of considering the facts independently upheld the addition made by assessing officer. The nature of land in duly mentioned in the purchase deed. The assessing officer raised the objection that in the purchase deed it is mentioned 'bin Kheti premium patra land', the ld AR for the assessee explained that land is 'agriculture land' and can be used as 'NA' (non-agriculture) subject to premium of payment, which means conditional permission was granted but the land was not converted to NA land. The ld AR for the assessee finally submit that beneficiary provision in the Act should be interpreted liberally and as such the assessee is entitled for deduction under section 54B. the ld AR for the assessee also relied on various case laws, and filed copies thereof, which was relied before ld CIT(A) 11. On the other hand, the ld Sr DR for the revenue submits that the ass....