Case Law Details
Mathur Lal Vs ITO (ITAT Jaipur)
Conclusion: Deduction under section 54B was allowable only if purchase of new land was made after the transfer of an existing land.
Held: Assessee claimed deduction U/s 54B which included purchase of agricultural land on 16/5/2012. AO denied the claim in respect of the agricultural land purchased on 16/5/2012. However, assessee received the consideration in respect of the land sold at the time of the agreement dated 29/12/2011 thus, the said consideration received at the time of first agreement dated 29/12/2011 was invested in purchase of agricultural land and therefore, the agricultural land purchased on 16/5/2012 was eligible for deduction U/s 54B. It was held when assessee himself had declared the transfer of the land in question vide agreement dated 11/6/2013 then the earlier agreement dated 29/12/2011 cpuld not be considered as a relevant document for the purpose of transfer of the land in question. There was no dispute that the land was purchased by assessee vide agreement dated 16/5/2012 which was prior to the sale declared by assessee vide agreement dated 11/6/2013. Consequently, the said purchase prior to the sale of the existing land would not be allowable for deduction U/s 54B.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by the assessee is directed against the order dated 19/02/2018 of ld. CIT(A), Kota for the A.Y. 2014-15.
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