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     IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI `SMC' BENCH,
                            NEW DELHI

          BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER



                          ITA No.8327/DEL/2018
                              [A.Y 2010-11]

Satish Chand                 Vs.           ITO
S/o Sh. Baburam                            Baraut
R/o Village Bali,
Distt. Baghpat, Baghpat

PAN No.ADYPC6781H

[Appellant]                                     [Respondent]


                 Date of Hearing                :    12.09.2019
                 Date of Pronouncement          :    16.09.2019


                     Appellant by :        Sh.Shamsher Singh, Advocate

                     Respondent by : Sh. S. L. Anuragi, SR. DR


                                   ORDER


PER N. K. BILLAIYA, AM:



       This appeal by the assessee is preferred against the order of
the     CIT(A)-2,   Meerut     dated       29.05.2018    pertaining      to
A. Y. 2010-11.

2.     The sum and substance of the grievance of the assessee is
that the CIT(A) erred in disallowing the claim of deduction u/s.
54 of the Act.
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3.     The assessee is an agriculturist whose return of income was
selected for scrutiny assessment on the basis of AIR information
in relation to the deposit of Rs.45.40 lacs in his savings bank
account.
4.     During the course of the scrutiny assessment proceedings
the assessee explained that he has sold a piece of land and the
sale consideration was deposited in the savings bank account.
5.     Assessing Officer accepted the contention of the assessee
the Assessing Officer accepted the deposits made in the savings
bank account but was of the view that the assessee is liable for
long term capital gains and invoking the provisions of section
50C of the Act, took the sale consideration at the value on which
stamp duty was paid and accordingly computed LTCG at
Rs.430327/-.






6.     Assessee preferred an appeal before the CIT(A) and pointed
out that the entire sale consideration was utilised towards
construction of his residential house situated at Village Bali,
Tehsil Baghpat and also furnished the valuation report of the
Government valuer and claim deduction u/s. 54 of the Act in
respect of investment made in the residential house. However,
the Ld. CIT(A) dismissed the claim of the assessee stating that
assesee has not made any claim before the AO.
7.     Before me the counsel for the assessee stated that being an
agriculturist the assessee was not in the knowledge of the claim
of statutory deduction u/s. 54 of the Act but when he was
advised by the counsel he made the claim before the CIT(A).
8.     The counsel prayed for claim of deduction u/s. 54 of the
Act.
9.     The DR strongly supported the findings of the CIT(A).
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10.    I have given a thoughtful consideration to the orders of the
authorities below. No doubt the assessee did not make any claim
of    deduction      u/s.54   of   the       Act   during     the     assessment
proceedings. It is true that the claim of deduction was made for
the first time before the CIT(A) alongwith supporting evidence. In
my considered opinion this statutory deduction should not have
been denied by the CIT(A) without looking into merits of the claim
supported by documentary evidences.






11.    I, therefore, in the interest of justice and fair play restore
this issue to the file of the AO.            The AO is directed to examine
the claim of deduction u/s.54 of the Act as per the provisions of
law and decide the issue afresh.
12.    In the result, the appeal filed by the assessee is allowed for
statistical purpose.

       The order is pronounced in the open court on 16.09.2019.




                                                                    Sd/-
                                                       [N.K. BILLAIYA]
                                                    ACCOUNTANT MEMBER
Dated: 16 September, 2019
*Neha*
Copy forwarded to:
1.      Appellant
2.      Respondent
3.      CITi
4.      CIT(A)
5.      DR

                                                              Asst. Registrar
                                                            ITAT, New Delhi
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Date of dictation                                              13.09.2019
Date on which the typed draft is placed before the dictating   16.09.2019
Member
Date on which the typed draft is placed before the Other       16.09.2019
member
Date on which the approved draft comes to the Sr.PS/PS         16.09.2019

Date on which the fair order is placed before the Dictating    16.09.2019
Member for Pronouncement
Date on which the fair order comes back to the Sr. PS/ PS      16.09.2019

Date on which the final order is uploaded on the website of    16.09.2019
ITAT
Date on which the file goes to the Bench Clerk                 16.09.2019

Date on which file goes to the Head Clerk.
The date on which file goes to the Assistant Registrar for
signature on the order
Date of dispatch of the Order