Rahul Bajpai Vs DCIT (ITAT Raipur)
Condition for use of land for agricultural purpose in preceding two years satisfied: Section 54B exemption granted
ITAT Raipur held that exemption under section 54B of the Income Tax Act is allowable since pre-condition regarding usage of land for agricultural purposes in two years immediately preceding date of transfer is satisfied. Accordingly, appeal allowed.
Facts- AO observed that assessee claimed deduction of Rs. 3,90,94,919/- u/s. 54B of the Income Tax Act. However, AO pointed out that no proof was provided by the assessee as regards the agricultural activities that were claimed to have been carried out on the subject land which was a pre- condition for claiming the aforesaid deduction. Thus, AO disallowed the deduction.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that that the pre-condition as regards usage of the lands sold by the assesses for agricultural purposes in the two years immediately preceding the date on which they were transferred is found to have been satisfied in so far the aforesaid lands are concerned, viz. (i) agricultural land admeasuring 1.424 hectares (out of 1.922 hectares) (supra); and (ii) agricultural land admeasuring 1.781 hectares (supra). Accordingly, the A.O is directed to allow the assesses claim for deduction u/s. 54B of the Act in so far the same pertains to the aforesaid lands sold by him during the subject year are concerned subject to verification of satisfaction of the other conditions contemplated in the said statutory provision.
