SHRI NAVINBHAI P. PATEL,,VADODARA vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(2),, BARODA

This appeal filed by the Assessee is directed against the order of the Ld. CIT(A)-IV, Ahmedabad dated 21.09.2016 pertaining to A.Y. 2015-16 and following grounds have been taken:

Facts of the case are that the assessee is an individual having income of remuneration and interest from the partnership firm in which he is partner and also having interest and other income. During the year under consideration, assessee has sold his ancestral land and declared the capital gain on it. And as per A.O. capital gain to the extent of Rs. 64,29,989/- arising on sale of the said immovable property was assessable in the hands of the assessee. In the return of income filed by the assessee on 09.03.2013, the assessee has declared Long Term Capital Gain of Rs. 8,61,660/- and assessee has claimed exemption u/s. 54F of the Act amounting to Rs. 50,80,583/-.

In reply to the notice, assessee submitted that he has entered into an agreement for development of land and thereafter assessee has booked new house with P.S. Villa for Rs. 5,36,000/- and allotment letter dated 1st February, 2012 was issued by the developer. And further stated that assessee has already given an amount of Rs. 9,55,000/- up to 31st March, 2013 towards cost of construction to the developer and he has also paid Rs. 13,00,000/- and Rs. 5,50,000/- in the

On the other hand, ld. A.O. contention was that assessee has not deposited amount of capital gain account before the due date and assessee has not purchased or constructed new house within two years from the transfer of original assets and disallowed the claim of the assessee and made addition of Rs. 52,13,133/-.

Against the said order, assessee preferred first statutory appeal before the ld. CIT(A) who dismissed the appeal of the assessee. 6. Now, assessee has come before us.

We have gone through the relevant record and impugned order. In this case, assets in question is inherited one and was owned by previous owner from whom it was inherited owned it much prior to 01.04.1981. Assessee made an agreement with developer on 17.09.2011 as and when property is to be developed and to be sold at that point of time consideration of Rs. 601 per square feet to be paid to the assessee. Without the aforesaid payment, the developer will not be entitled to give possession of a flat to any buyers.

In support of its contention, assessee has filed some working before us with regard to payment booked by the developer and payment received by the assessee. Thus, in the interest of justice, we set aside this matter back to file of the ld. CIT(A) who will go through all the working and evidences on which assessee seeks to rely upon and an opportunity of being heard to be given by

In the result, appeal filed by the Assessee is allowed for statistical purposes.