COMMISSIONER OF INCOME TAX Vs. SURJIT SINGH

JUDGEMENT

(1.) THIS judgment shall dispose of two appeals i.e., IT Appeal No. 567 of 2007 and IT Appeal No. 578 of 2007 arising out of a common order of the Tribunal, Chandigarh Bench, Chandigarh (for short the 'Tribunal') passed in ITA No. raised the following similar substantial question of law in both these appeals : "Whether on the facts and law, the Hon'ble Tribunal was justified in holding that the capital gains could not be charged in asst. yr. 2001 -02 merely because assessee had offered the same subsequently in asst. yr. 2002 -03 and whether chargeability of capital gains could be postponed to asst. yr. 2002 -03 despite the fact that transfer under s. 2(47) had taken place in the previous year relevant to asst. yr. 2001 -02 and assessee had also disclosed the capital gains in first instance in this assessment year -

(2.) THE assessee is an individual, who had shown income from business, salary, long -term capital gain and other sources 2004 at income of Rs. 18,62,450. In the return of income assessee had shown capital gains of Rs. 17,17,730 on sale of land against which deduction of Rs. 10,33,660 was claimed under s. 54F of IT Act. It was however, noticed during assessment proceedings that the conditions as prescribed under sub -s. (4) of s. 54F of the Act were not fulfilled. On being confronted with this fact, the respondent withdrew exemption claimed for asst. yr. 2001 -02 stating as under in the "Exemption relating to capital gains as claimed for the asst. yr. 2001 -02 stand withdrawn and has been offered for tax for the asst. yr. 2002 -03." The AO thus completed the assessment after disallowing exemption claimed under s. 54F of IT Act and taxed capital gains of Rs. 17,17,730 in asst. yr. 2001 -02.

(3.) BEING aggrieved against the order of the AO, the respondent preferred an appeal before the CIT(A), Ludhiana, who offered capital gain for tax in the asst. yr. 2002 -03 instead of asst. yr. 2001 -02 and the same capital gain cannot be taxed twice.