Case Law Details
Tushar Jagmohan Kamthe Vs ITO (ITAT Pune)
ITAT Pune held that deduction under section 54B of the Income Tax Act is available only if the land was used for agricultural purpose in the immediate two preceding years. in absence of the same, deduction u/s 54B ineligible.
Facts- The assessee sold a land along his family members admeasuring 80 H.75R situated at Yewlewadi, Tal. Havel, Dist Pune. Out of the total consideration of Rs.9,60,00,000/-, the assessee’s share was of Rs.56,00,000/-. The assessee purchased another agricultural land by investing Rs.58,30,000/-.
The assessee claimed in the ROI that the assessee is eligible for deduction under section 54B, as assessee sold agricultural land purchased agricultural land. AO arrived at the conclusion that the land sold was not agricultural land as it falls under Urban Land classified as ‘R Zone Land’. In the assessment order, in para 4.7 the AO mentioned that from entry in 7/12 extract prima-facie no agricultural activity is found to be carried out. Therefore, the AO denied the assessee’s claim for 54B deduction. Aggrieved by the order of the AO, the assessee filed appeal before the CIT(A)-9, Pune. The CIT(A) upheld the assessment order.
Aggrieved by the same, the assessee filed appeal before this Tribunal.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
