Case Law Details
Brief of the case:
Punjab & Haryana High court held in CIT vs Shri Dinesh Verma that exemption u/s 54B could be claimed for short term & Long term assets because there was no such provision u/s 54B which denies exemption for short term assets. So land sold within the two years could be claimed as exemption though short term gain. Further the new land purchased for the use of agriculture purpose had to be in the name of assesse because as per provision of sec 54B new asset had to be purchased by the assesse who had sold the same. So asset purchased under any other name was not allowed.
Moreover the land should be used for agriculture purpose for last 2 years before it was being sold by the assesse. Law nowhere mentions that land should be continuously used for 2 years.
Facts of the case:
The assesse had sold land used for agriculture purpose for Rs 46,00,000/- after using for 2 years and purchased another land for agriculture purpose for Rs 44,76,000/ in his name and for rest amount in his wife name within the next 2 years as required and claimed exemption u/s54B for whole amount. The AO denied the exemption on the basis that exemption was not available for short term assets. Moreover AO was of the view the exemption was only available to the assesse if he had purchased land in his own name only. Please become a Premium member. If you are already a Premium member, login here to access the full content.
