Exemption U/S 54B Available for Purchase of Agricultural Land in Son’s Name

Balu Vitthal Kharate Vs ACIT (ITAT Pune) Amendment to section 55A is effective from 01.07.2012 and the same doesn’t have retrospective effect. Exemption u/s 54B cannot be denied on the base that the land was purchased in son’s name when the new land was used for agricultural purpose. FACTS – Assessee, along with 5 other members, sold agricultural land for total consideration of INR 48,33,334. Cost of acquisition adopted as INR 40,10,616 as per the approved valuer report. AO made reference to DVO to determine the FMV of the land as on 01.04.1981. DVO determined valuation at INR 48 per squ...