BHARATBHAI BALUBHAI GHELANI,,SURAT vs. DCIT,CIRCLE1(3),, SURAT

Assessee by Shri Mehul K. Patel Advocate Revenue by Ms. Anupama Singla – Sr-DR Date of hearing 16.07.2021 Date of pronouncement 16.07.2021 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER:

1. 1. This appeal by assessee is directed against the order of ld. Commissioner of Income tax (Appeals), “ ld.CIT(A)” Surat dated 27.08.2018 for assessment year (AY) 2013-14.

2. At the outset of hearing the Ld. Authorized Representative (AR) of the assessee submits that a very short issue is involved in the present appeal. The Ld. AR of the assessee submits that initially the assessee sought the exemption under section 54B of the Act in respect of purchase of agricultural land at Vasu/315 Sl.No. 142 for Rs.1.50 crore. However, during the course of assessment, the assessee filed revised computation of long term capital gains and exemption under section 54B and in place of examine Sh. Bharatbhai B Ghelani under section 54 in respect of agricultural land at Uhna B No.142. The assessee claimed exemption of Rs.1.91Crores. The Assessing Officer neither discussed the revised claim of exemption nor rejected by express order. Thereby, denied the enhanced/ revised exemption under section 54B. Aggrieved by the action of the Assessing Officer, the assessee filed appeal before the Ld. CIT(A). The Ld. CIT(A) upheld the action of the Assessing Officer by taking view that assessee has not revised return of income as per section 139(5). And in absence of revised return the assessing officer is bound to make the assessment on original return. Further, aggrieved, the assessee come before this Tribunal by way of second appeal. The Ld. AR of the assessee submits that it is settled law, although, assessing officer is not entitled to admit additional claim, however, this power are not restricted to the appellate authority. The appellate authority including Ld. CIT(A) and the Hon’ble Tribunal is entitled to admit the additional ground of appeal for additional claim. To support his submission, the Ld. AR of the assessee relied upon the decision of Hon’ble Supreme Court in the case of Goetz India Ltd. vs. CIT (2006) 284 ITR 323 (SC) and decision of jurisdictional High Court in the case of CIT vs. Mitex Impex, 46 Taxmann.com 30 (Guj).

3. On the basis of aforesaid factual and legal submission, the Ld.AR for the assessee submits that the additional claim of the assessee may be admitted