Deduction u/s 54B not allowed if land is not used for agriculture for last preceding two years: ITAT

Amartbhai Mandanbhai Desai Vs PCIT (ITAT Ahmedabad)

In the recent ruling ITAT held that deduction u/s 54B would not be applicable in case land was not used for agricultural purposes in two years preceding date of transfer.

Assessee filed return for AY 2017-18 at Rs. 3,26,550/- after claiming deduction under Section 54B on account of capital gain on sale of property, which was accepted. Subsequently, PCIT observed that the assessee had sold agricultural land along with three co-owners and the assessee’s share in the property was 1.73 crores whereas assessee had claimed dedu

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