No denial of sec. 54B relief if land sold by assessee was classified as agricultural land in revenue record

512
No denial of sec. 54B relief if land sold by assessee was classified as agricultural land in revenue record

No denial of sec. 54B relief if land sold by assessee was classified as agricultural land in revenue record

[2019] 103 taxmann.com 166 (Pune – Trib.)
IT : Where land sold by assessee was classified in revenue record as agricultural land and was subjected to land revenue and, further, land was being cultivated on which jowar crop was grown, land transferred by assessee was an ‘agricultural land’ and capital gain arising from sale of such land was eligible for exemption under section 54B
Section 54B of the Income-tax Act, 1961 – Capital gains – Transfer of land used for agricultural purpose (Agricultural land) – Assessment year 2008-09 – During year, assessee transferred an agricultural land to one DMR, a builder and developer – Assessee had further purchased an agricultural land – Accordingly, he claimed exemption under section 54B – Assessing Officer rejected same on ground that land sold by assessee was not an agricultural land as same was situated within municipal corporation limits – It was noted that land in question was classified in revenue records as agricultural land and it was subject to land revenue – Further, land was cultivated on which jowar crop was grown – Assessee was not a temporary user of such land and he was using it for at least 4 years in a row – Further land was not sold on yardage basis – Whether, on facts, land transferred by assessee was an agricultural land and capital gain arising from such land was eligible for exemption under section 54B – Held, yes
Murtuza Shabbir Jamnagarwala

LEAVE A REPLY

Please enter your comment!
Please enter your name here