ITAT allows Section 54B Exemption: Partial Agricultural Use Sufficient

Arun Agarwal Vs ITO (ITAT Jodhpur) Income Tax Appellate Tribunal (ITAT) Jodhpur ruled in favor of the appellant, Arun Agarwal, allowing the capital gains exemption under Section 54B of the Income Tax Act, 1961. The case revolved around the sale of agricultural land, where the assessee claimed exemption by investing in new agricultural land and depositing funds in the Capital Gains Account Scheme. The Assessing Officer (AO) and the Commissioner of Income Tax (Appeals) [CIT(A)] had earlier disallowed the exemption, contending that only a small portion of the land was used for agriculture. Howeve...