KALYA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) CHALLENGE in this Income Tax Appeal is to the order dated 22nd November, 2011, whereby the Income Tax Appellate Tribunal, Jaipur Bench, Jaipur partly allowed the appeal filed by the assessee-appellant, while the appeal filed by revenue was allowed for statistical purposes.

(2.) SHORN of unnecessary details, the facts of the case, in nub, are that agricultural land ad-measuring 1.40 ha., situated in village Balmukandpura was inherited by the assessee-appellant and the same was mutated in his name in the year 1956. The aforesaid land was sold to M/s. Vatika Limited for a total consideration of Rs. 1,61,09,100/- vide registered sale deed dated 12.10.2006. In order to claim various exemptions including exemption under Section 54B of the Income Tax Act, the assessee purchased new agricultural land for a total consideration of Rs. 1,22,71,440/- in the name of his son and daughter-in-law. The Assessing Officer, having considered the matter ad-longum, vide its order dated 18.12.2009, assessed the capital gain of Rs. 1,59,83,761/-, in the hands of the assesse-appellant, liable for charging to tax. Dissatisfied with the order of Assessing Officer, the appellant-assessee preferred an appeal before the Commissioner of Income Tax (Appeal). The learned Commissioner of Income Tax (Appeal) vide his order dated 28.2.2011 affirmed the order of the Assessing Officer and rejected the claim of the appellant-assessee seeking exemption under Section 54B of the Act, albeit the learned Commissioner of Income Tax allowed the claim under Section 54B of the Act.

(3.) A bare reading of Section 54B of the Income Tax Act does not suggest that assessee would be entitled to get exemption for the land purchased by him in the name of his son and daughter-in-law. In the facts and circumstances of the case also aforesaid inference has not been drawn. Same is question of fact. No substantial question of law arises in appeal. Question whether purchase was by assessee or by son, is a question of fact.