Case Law Details
Siddhulal Patidar Vs ITO (ITAT Indore)
Investment by assessee in the new Agricultural land from sale-proceed of old Agricultural land, even if made before registration of sale-deed, is eligible for Section 54B exemption and assessee entitled for exemption u/s 54B even if the registration has been taken in the name of son.
Introduction: Selling agricultural land can generate significant capital gains, which are typically taxable in India. However, the Income Tax Act offers a beneficial provision – Section 54B – to help taxpayers save on taxes when they reinvest the sale proceeds in another agricultural land.
In a significant ruling by the Income Tax Appellate Tribunal (ITAT) in Indore, in the case of Siddhulal Patidar Vs ITO, a pivotal decision was made regarding the eligibility for Section 54B exemption of the Income Tax Act, 1961. The tribunal’s order dated 28.02.2024 delves deep into the nuances of the exemption related to investments in agricultural land, setting a precedent for similar cases and providing clarity for taxpayers and practitioners alike.
Key Points of Section 54B:
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