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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI KUL BHARAT & SHRI MANISH BORAD
आदेश / O R D E R
PER KUL BHARAT, J.M: This appeal by the revenue is directed against order of the CIT(A)-3, Indore dated 19.5.2017 pertaining to the
[ Randhir Gawade, Indore] assessment year 2013-14. The revenue has raised following grounds of appeal:-
1. Whether on the facts and in the circumstances of the case, Ld. CIT(A)-III Indore has erred in law by deleting the addition of Rs.1,31,00,044/- made by the A.O. on account of disallowance of exemption claimed u/s 54F.
Whether on the facts and in the circumstances of the case, Ld. CIT(A)-III, Indore was justified in deleting the addition by ignoring the finding of the A.O. that the assessee failed to provide details of utilization of amount withdrawn from capital gain sheme fund as prescribed under Capital Gain Account Scheme, 1988. 3. The appellant reserves the right to add, amend or alter the ground of appeal
on or before the date of appeal is finally heard for disposal.
2. Briefly stated facts are that case of the assessee was picked up for scrutiny assessment. The assessment u/s 143(3) of the Income Tax Act, 1961 (hereinafter called as ‘the Act’) was framed vide order dated 30.3.2016. The A.O. while framing the assessment, observed that during the year under consideration, assessee had sold immovable property situated at 11/5, South Tukoganj, Indore admeasuring 5304 sq.ft. or 492.93 sq.mtrs., as shown in the sale deed to Shri Ramesh Modi & Smt. Rekha Modi.
The property was claimed to be sold at Rs.2,75,00,000/-.
[ Randhir Gawade, Indore] Out of total sale consideration of Rs.2,75,00,000/-, Rs.55,00,000/- was claimed to be belonged to Shri Anil Gawade (HUF). The assessee offered long term capital gain of Rs.31,90,952/- and claimed exemption u/s 54F of the Act of Rs.1,31,00,044/-. The A.O. further observed that the market value of the property was at Rs.4,01,77,000/- as per stamp valuation authority. The A.O. therefore made addition of Rs.1,26,77,000/-. Further, the A.O. also made disallowance of exemption claimed u/s 54F of the Act of Rs.1,31,00,044/- and added the same to the income of the assessee. Further, the A.O. disallowed claim of deduction under chapter VI-A of Rs.1,01,127/-. Thus, the A.O. computed taxable income at Rs.2,92,55,601/-.
Aggrieved by this, the assessee preferred an appeal before Ld. CIT(A), who after considering the submissions partly allowed the appeal, thereby the Ld. CIT(A) adopted the market value of the property at Rs.2,96,48,000/- as per
[ Randhir Gawade, Indore] the DVO's report. Further, the Ld. CIT(A) allowed exemption u/s 54F of the Act and claim of deduction under chapter VI-A.
Aggrieved by this, the revenue is in appeal. The only effective ground is against allowing the claim of deduction u/s 54F of the Act of Rs.1,31,00,044/-. Ld. D.R. supported the order of the A.O. and submitted that Ld. CIT(A) is not justified in deleting the additions.
On the contrary, Ld. Counsel for the assessee reiterated the submissions as made in the written submissions and submitted that there is no infirmity in to the order of the Ld. CIT(A). The Ld. CIT(A) has adopted the market value as per the DVO's report and further, the assessee had since fulfilled all the conditions for entitlement of deduction u/s 54F of the Act.
[ Randhir Gawade, Indore] 6. We have heard the rival submissions, perused the materials available on records and gone through the orders of the authorities below. We find that the Ld. CIT(A) has adopted the market value as per the DVO's report. The revenue has not brought any other material except the valuation made by the stamp valuation authority. It is also not stated as to how the DVO's report is not correct. Under these facts, we do not see any infirmity in the order of the Ld. CIT(A) to adopt the market value as per the DVO's report. Further, Ld. CIT(A) has allowed deduction u/s 54F of the Act. As the assessee in accordance with the provisions of section 54F of the Act amount was deposited in the capital gain account and so utilized there from within the time frame as prescribed under the law, the grounds raised by the revenue are devoid of merit. Hence, we reject the same.
[ Randhir Gawade, Indore] 7. In the result, the appeal filed by the revenue is dismissed.
Order was pronounced in the open court on 07 .02.2019.