TaxTMI 
TaxTMI 
2026 (9) TMI 1685
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....of delay. Considering the contents of the affidavit and the totality of facts and circumstances, we are satisfied that the assessee was prevented by sufficient cause from filing the appeal within the prescribed limitation period. Accordingly, the delay of 3 days in filing the appeal is condoned and the appeal is admitted for adjudication on merits. 3. The facts of the case are that the assessee is an individual deriving income under the heads "Income from House Property", "Business or Profession", "Capital Gains" and "Other Sources". During the year under consideration, the assessee sold ancestral agricultural land for a consideration of Rs. 8,00,00,000 vide sale deed dated 18.09.2017. Against the resultant capital gains, the assessee claimed deduction/exemption under sections 54F and 54B of the Act. 3.1 The assessee computed the capital gain at Rs. 7,72,80,000 after reducing the indexed cost of acquisition and claimed deduction under section 54F of Rs. 2,63,71,500 on account of investment in a residential property and deduction under section 54B in respect of investment made in agricultural land. The assessment proceedings were taken up under the Limited Scrutiny scheme on t....
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....ial house on the date of transfer of the original asset, the learned CIT(A) held that the assessee failed to satisfy the condition prescribed under the proviso to section 54F and accordingly upheld the disallowance of Rs. 2,63,71,500. 9. The assessee has challenged the order of the learned CIT(A), inter alia, on the following grounds: 1. That the order of the Assessing Officer is defective both in law and on facts. 2. That the addition/disallowance made under section 54B is unjustified. 3. That the addition/disallowance made under section 54F is unjustified. 4. That the charging of interest under sections 234A, 234B and 234C is not justified. 5. That the initiation of penalty proceedings under section 270A is not justified. 6. The assessee has also raised a general ground seeking permission to raise additional grounds, if any. 10. Since the controversy before us essentially concerns the eligibility of the assessee's claims under sections 54B and 54F, we proceed to adjudicate these issues. The matter was elaborately argued by both sides, namely, the learned AR for the assessee and the learned DR for the Revenue. 11. ....
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.... Part Heard. 15. The ld. DR had placed on record copy of the Remand Report filed by the AO which is to the following effect : 16. Pursuant to the aforesaid direction, the Assessing Officer, along with the learned CIT-DR, appeared before us and confirmed the factual position concerning the properties. In respect of SCO No. 7, Dhakoli, Zirakpur, it was confirmed that the property was commercial in nature. In respect of the other two properties, it was confirmed that the properties were urban agricultural properties purchased by the assessee. The Revenue, however, submitted that two of the agricultural properties were situated in an urban area and, therefore, the relevant statutory requirements required examination. The learned DR accordingly relied upon the factual report and the orders of the authorities below, while leaving the matter to be decided on the basis of the material and verification carried out pursuant to the Tribunal's direction. 17. We have carefully considered the rival submissions, the orders of the authorities below, the material available on record and the factual report furnished pursuant to our order dated 13.08.2026. The assessee had invested Rs. 2....
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....a. However, the report furnished pursuant to the direction of the Bench confirms their agricultural character. Mere location of an agricultural property in an urban area, in the absence of material establishing that the property was not agricultural in character, cannot by itself be a sufficient basis for denying the benefit claimed under section 54B. 21. The documentary evidence regarding the purchase of agricultural land having been examined and the agricultural nature and purchase by the assessee having been confirmed, we find that the assessee has established the factual basis of the claim. Accordingly, the claim under section 54B is allowable to the extent of the eligible investment established by the purchase deeds and other material placed on record, including the investments covered by the purchase deeds dated 02.07.2018 and 01.08.2018. The disallowance sustained by the learned CIT(A) under section 54B is, therefore, deleted to the extent of the eligible investment duly established on record. 22. The grounds relating to levy of interest under sections 234A, 234B and 234C are consequential in nature and shall stand modified in accordance with the final computation of i....
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.... well as nature/status of SCO No.7, Dhakoli, Zirakpur for the purpose of section 54F in F.Y. 2017-18, after providing due opportunity to the assessee. Further, the Hon'ble ITAT vide its daily order dated 13.08.2026 in Appeal Number !'A350/chandi/2025 Titled as Sushil Tiwari, Panchkula Vs. ITO, Ward-3, Panchkula directed the AO to ascertain the nature and character of the land as it existed on the date of its sale. The AO issued letter dated 19.08.2026 to the assessee (which was served on the assessee same day), requesting him to provide the Fard/Girdawari of the Land sold by the assessee in the F.Y. 2016-17 and document indicating the usage of the property SCO No. 7, Dhakoli, Zirakpur. A the gardenda ofertando sold by the assessee in the F.Y. 2016-17 and F.Y. 2017-18. Further, the AO has also deputed Sh. Vijender Kumar, ITI to get the physical verification of the properties in question. In response to the letter issued to the assessee, the assessee submitted the Fard of the Land sold by him for the F.Y. 2016-17. Further, the Registrar, Tehsil Zirakpur has not responded to the queries raised by this office. Sh. Vijender Kumar, ITI has also submitted his repo....
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....e Property. The review of the said "Grill Inn" on google map were also examined and it was found that there are some 8 years older reviews. The same are appended here: CHE FOR THE VEG and non veg n respect of the Land sold by the assessee, Google Earth Historical Imagery was used to ascertain the use of land in the F.Y. 2016-17. The Historical Imagery of the land as on 24.02.2017 (which is before the date of sale deed i.e. 29.03.2017) is appended here for reference: Historical imagery ( 24 Feb 2017 > > The Historical imagery as available on Google earth shows that the Land in question had been partly used for agricultural purpose at the time of its sale (March, 2017) but most of the part was lying vacant. Further, the Inspector provided the Coordinates of the nearest point toward the Tricity in respect of the Land in question. The same were taken for measuring distance as per section 2(14)(iii) of the Act. From the above evidences, the AO furnishes the following report on issues involved: 1. .. The SCO 7, Dhakoli, Zirakpur: The property is situated in the commercial area and further, from Google map reviews of "Grill Inn", it is clear that the property was used fo....