TaxTMI 
TaxTMI 
2026 (1) TMI 1483
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (iii)The Id CIT(A) erred in law and on facts in confirming disallowance of exemption u/s 548 in respect of investment in agricultural land and all the conditions have been complied with (iv) The Id CIT(A) erred in law and on facts in not appreciating that the appellant had made substantial payments towards consideration for purchase of the new agricultural land and possession was obtained in prescribed time thereby proving the effective dominion over the property. (v) The Id CIT(A) erred in law and on facts in not appreciating that merely because conveyance deed could not be executed for the reasons beyond the control of the appellant could not be reason to hold that the purchase was not complete. (vi) The appellant craves leave to add, alter, modify or substitute any ground of appeal at the time of hearing. 3. Brief facts of the case are that the assessee is an individual and based on the information about purchase and sale of property by the assessee received by the Ld. Assessing Officer (AO), notice u/s 148 of the Act validly issued and served upon the assessee followed by serving other statutory notices. The assessee did not furnish any retur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....shing the return of income under section 139, shall be deposited by him before furnishing such return (such deposit being made in any case not later than the due date applicable in the case of the assesses for furnishing the return of income under sub-section (1) of section 129) in an account in any such bank.... for the purchase of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset. On going through the interplay between sub-sections (1) and (2) of section 548 of the Act. it becomes evident that exemption uls.548(1) is subject to the assessee depositing the amount of unutilized capital gain in a designated bank account within the time provided uls.139 of the Act. At this juncture, it is relevant to note that the appellant was a non-filer for the impugned AY 2014-15 and has not deposited the amount of unutilized capital gain in a designated bank account within the due date for filing the ITR for the impugned AY 2014-15 5.6.5 Viewed from any angle it is clear that the assessee has not complied with the conditions for avalling exemption u/s 54B of the Act. In view of the above facts and circumstances, I'm of the considered....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as not furnished regular return of income for the year under consideration nor has he filed any response to any notice u/s 148 of the Act. However during the course of reassessment proceedings the assessee has claimed that he is eligible for deduction u/s 54B of the Act as he has utilized 50% share of the sale consideration from sale of urban agricultural land for purchase of another agricultural land within a period of two years from the date of sale of land. The assessee claim of having invested Rs. 1,27,64,010/- for the purchase of other agricultural land from land owner Mr. Dipchand Kothari is not in dispute. It is stated that the land was sold on 26.03.2014 and received a sale consideration of Rs. 1,14,25,000/- and that the assessee is required to utilize the amount within two years. The assessee in order to claim benefit u/s 54B of the Act has made the following payments for purchase of agricultural land:- Date Amount Rs. 29.10.2013 13,00,000/- 29.10.2013 13,00,000/- 26.09.2014 50,33,627/- 26.09.2014 37,54,907/- Cash in advance 13,75,476/- Total Rs. 1,27,64,010/- 7. In the above details the major payment has been made through Bank ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n in respect of purchase of land at S.No. (i) above, however, he show caused the essence in respect of deduction claimed in respect of land as mentioned at S.No (ii) above, observing that for getting the claim of deduction it is necessary that the sale deed should be registered, whereas, in the case of purchase of land at Village Dudu allegedly for a sum of Rs. 1,00,00,000/-, it was by way of an agreement to sell and not through registered Deed. The assessee explained that the entire payment for purchase of the land was made through cheques and the possession was handed over to the assessee by the seller with all the rights to use the sand land or to sell it further. The name of the assessee had also been entered in Kashra Girdawari a document showing the possession and cultivation of the land. It was also explained that at the time of the execution of the agreement to sell, the assessee was not aware of the Stay Order to the sale of land issued by the ADM and hence due to the above legal obstruction, the sale deed could not be registered 3. The Ld. Assessing officer, however, rejected the above contention of the assessee and observed that the word used in section 5411 of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....has discussed as to whether the agreement to sell can be considered to be an instrument of transfer of property. The Hon'ble Supreme Court observed that though in normal circumstances by executing an agreement to sell in respect of immovable property, a right in personam is created in favour of the transferee/ vendee and when such a right is created, the vendor is restrained to sell the said property to someone else because the transferee has got a legitimate right to enforce specific performance of said agreement to sell. In normal circumstances, it cannot be said that entire property have been sold at the time when agreement to sell is entered into. However, looking at the provisions of section 2(47) of the Income-tax Act, 1961, transfer in relation to the capital asset is complete if a right in a property is extinguished executing an agreement to sell, the capital asset can be deemed to have been transferred. The Hon'ble thus held that the transfer was compete on the execution of agreement to sell and that the by Supreme Court thus assessee was entitled to claim of deduction u/s 54 in respect of purchase of new residential house subsequent to such transfer through agreem....