CIT 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. 655/Chandi/2005 and ITA No. 656/Chandi/ 2005, dt. 14-9-2006 for the assessment year 2001-02. The revenue has raised the following similar substantial question of law in both these appeals:

(2.) The assessee is an individual, who had shown income from business, salary, long-term capital gain and other sources in the year under appeal. The assessee had filed return of income for the assessment year 2001-02 on 31-3-2002 declaring income of Rs. 8,28,791. The assessment was completed by Assistant Commissioner-II, Ludhiana, vide order dated 9th Feb., 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 Section 54F of Income Tax Act. It was however, noticed during assessment proceedings that the conditions as prescribed under Sub-section (4) of Section 54F of the Act were not fulfilled. On being confronted with this fact, the respondent withdrew exemption claimed for assessment year 2001-02 stating as under in the letter dated 7-1-2004:

(3.) Being aggrieved against the order of the assessing officer, the respondent preferred an appeal before the Commissioner (Appeals), Ludhiana, who vide his order dated 28-1-2005 allowed the appeal of the assessee on the reasoning that the assessee himself had offered capital gain for tax in the assessment year 2002-03 instead of assessment year 2001-02 and the same capital gain cannot be taxed twice.