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Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the order of the Ld. CIT(A)/NFAC, Delhi dt. 21/02/2024 pertaining to Assessment Year 2007-08 wherein the limited ground of appeal
taken by the assessee relates to non- grant of deduction under Section 54B of the Act.
2. Briefly the facts of the case are that the assessment in this case was completed under section 144 r.w.s 147 of the Act vide order dt. 27/02/2015 wherein the AO has brought to tax the sale consideration of the land sold at Village Kheri Rangran which falls within 8 Km. of the municipal limits of Jagadhri within the ambit of capital assets as per provisions of Section 2(14) of the Act after providing index cost of acquisition as on 01/04/1981 and determining Long Term Capital Gain (LTCG). Thereafter, the assessee carried the matter in appeal before the Ld. CIT(A) and one of the grounds raised by the assessee relates to non-grant of deduction under section 54B and 54F of the Act.
3. During the course of appellate proceedings, the assessee also moved an application under section 46A of the Act which was forwarded to the AO and remand report was also called and after considering the submissions of the assessee, the Ld. CIT(A) has returned a findings that the assessee is eligible for deduction under section 54F of the Act to the extent of expenditure incurred for the construction of the house amounting to Rs. 28,75,000/- basis fresh valuation report, certificate of Mayor, copy of electricity bill as well as the bank certificate. However, as far as claim of deduction under section 54B of the Act was concerned, no findings has been recorded by the Ld. CIT(A) and as against LTCG of Rs. 41,37,368/- determined by the AO, the Ld. CIT(A) has allowed the deduction under section 54F amounting to Rs. 28,75,000/- and the remaining LTCG of Rs. 12,52,368/- was sustained by him.
During the course of hearing, our reference was drawn to the remand report submitted by the AO wherein he has stated that the assessee is entitled to get deduction under section 54B of the Act to the extent of 1/3rd share amounting to Rs. 6,57,200/- as another agriculture land was purchased by the assessee within the stipulated period. It was submitted that the copy of the purchase deed and the remand report is very much part of the record and the claim of deduction under section 54B has not been allowed to the assessee by the ld CIT(A) even though AO in the remand report has fairly agreed that assessee is eligible for claim of deduction under section 54B of the Act.
Per contra, the Ld. DR has relied on the order of the lower authorities. It was submitted that there is no findings recorded by the Ld. CIT(A) as far as claim of deduction under Section 54B of the Act and accordingly matter may be set aside to the file of the Ld. CIT(A).
We have heard the rival contentions and purused the material available on record. The limited issue under consideration relates to claim of deduction u/s 54B of the Act which the assessee has raised before the ld CIT(A) and as so submitted by the ld AR, the AO in the remand proceedings has verified the documentation and claim so made and in his remand report has stated that the assessee is entitled to get deduction under section 54B of the Act to the extent of 1/3rd share amounting to Rs. 6,57,200/- as another agriculture land was purchased by the assessee within the stipulated period and therefore, the claim of the assessee be allowed.