INCOME TAX ACT, 1961

Section 54B

Capital gains - Exemption under section 54 - -

Assessee claimed exemption under section 54B which was denied by AO on ground that assessee was not entitled to have benefit under section 54B as there was no agricultural operation in the land concerned which was subjected to sale within the prescribed period of two years prior to the date of sale. The factual aspect in this regard was substantiated by calling for a report from the Patwari who certified that there was no agricultural operation within the stipulated period. It was accordingly that a finding was rendered by AO that no exemption could be granted, which led to assessment order. CIT(A) and Tribunal allowed the appeal of assessee. Held: Assessee did not make any specific reference to be considered by CIT(A) or by the Tribunal. The submission before CIT(A) as well as Tribunal was all with reference to the factual aspect as to necessity to have the agricultural operation in the property concerned which was subjected to sale within the span of two years in conformity with the mandate of Section 54B. This was considered by CIT(A) as well as Tribunal on the basis of the materials on record and a finding was rendered accordingly. This being the position, finding rendered by CIT(A) which was subjected to scrutiny and finding given by Tribunal was purely on a question of facts and no question of law is involved in this appeal.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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