TaxTMI 
TaxTMI 
2024 (7) TMI 1283
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....nds of appeal raised by the assessee are as under: "1. On the facts and circumstances of the case as well as law on the subject, the learned Assessing Officer has erred in disallowing deduction of Rs. 14,91,361/- u/s 54B of the I.T. Act, 1961. 2. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 2. The facts of the case in brief are that assessee filed his return of income (in short 'ROI') on 29.03.2017 declaring total income of Rs. 1,04,46,420/-. The case was selected for scrutiny issued notice u/s 143(2) on 26.09.2017. In response to notices u/s 143(2) and 142(1) of the Act assessee has filed submission / explanation by uploading the same in ITBA portal. The assesse....
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....ze the capital gain before the due date of filing of return of income or should have deposited the unutilized capital in specified bank under Capital Gains Account Scheme, 1988 before due date for furnishing the return of income u/s 139(1) of the Act. Therefore, AO added the addition of Rs. 14,91,361/- u/s 54B of the Act. Aggrieved by the order of AO, assessee preferred appeal before CIT(A). 3. During appellate proceedings, CIT(A) observed that assessee has purchased an agriculture land on 29.04.2017, which is beyond the time limit allowed as per the provisions of Section 54 of the Act. Therefore, the CIT(A) confirmed the action of AO by stating that ROI has to be filed as per 139(1) and not 139(4) of the Act to be eligible for deduction u....
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....2656/Del/2017 dated 10.02.2021. 5. On the other hand, Ld.Sr-DR for the Revenue supported the order of lower authorities. He submitted that the conditions of Section 54B are not fulfilled in case of the assessee. Hence, the AO has rightly disallowed deduction of Rs. 14,91,361/- claimed u/s 54B of the Act. Such disallowance has been rightly upheld by the CIT(A). 6. We have heard rival submissions of the parties and perused the materials on record. We have also deliberated on the decisions relied upon by Ld.AR of the assessee. Before proceeding to discuss the merit of the claim, it would be proper to reproduce Section 54B which reads as under: "[Capital gain on transfer of land used for agricultural purposes not to be charged in certain ca....
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....oses of sub-section (1), the amount, if any, already utilised by the as assessee or the purchase of the new asset together with the amount so deposited shall be deemed to be the 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. Explanation.- [Omitted by the Finance Act, 1992, w.e.f. 1-4....