Amendment by FA 2013 to include HUF within scope of Sec. 54B relief is clarificatory in nature: ITAT
Shri Sitaram Pahariya (HUF)
 127 taxmann.com 618 (Agra – Trib.)
Short Overview of the case:
Word assessee used in section 54B, had always included HUF and further amendment brought on by Finance Act 2013, in section 54B by inserting assessee being an individual or his parent, or a Hindu undivided family was classificatory in nature and was introduced by Ministry with a view to extend benefit to HUF.
HUF has been recognized as separate tax entity, therefore, before and after amendment, if agricultural land, which was being used by HUF for two years prior to transfer, has been transferred by HUF and HUF purchases any other agricultural land within two years of such transfer then it shall be entitled to benefit of section 54B/54F.
It will be helpful in all the cases where the AO has denied the claim of exemption.
Where assessee HUF within two years of sale of agricultural land, had invested amount and purchase of land in accordance with requirement of section 54B it would be entitled to benefit of section 54B.