Rohitbhai Jivrambhai Patel Vs ITO (ITAT Ahmedabad)
Section 54B: Late Registration Need Not Defeat Relief-Timely Payment and Possession Hold the Key
Registration Date Alone Does Not Settle the Claim
The Ahmedabad ITAT has held that a delay in registering the final conveyance deed beyond the assessee’s control should not defeat a legitimate exemption under Section 54B. Where the purchase consideration has been paid within the prescribed two-year period, the factual question of whether possession was also obtained within that period requires examination.
The Tribunal was considering a disallowance of ₹1,79,94,050 relating to agricultural lands whose registered sale deeds were executed after the two-year deadline.
It found that the entire purchase consideration had been paid within time. However, the evidence concerning timely possession had not been factually verified by the lower authorities. Accordingly, the matter was remanded to the Assessing Officer, with directions to examine the agreements, possession letter, and supporting documents.
The deduction was therefore not finally allowed by the Tribunal. Relief remains subject to verification of the relevant facts.
Sale of Agricultural Land and Reinvestment
The assessee, a resident individual, filed his return for Assessment Year 2018-19 on 30 October 2018.
He jointly owned agricultural land at Village Dumad, District Vadodara, with a 50% share. The land was sold on 11 August 2017 for an aggregate consideration of ₹6,67,23,250. The assessee’s share of the consideration was ₹3,33,61,625.
