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| The Tax Publishers2020 TaxPub(DT) 1992 (Ahd-Trib) INCOME TAX ACT, 1961
Section 54B
Where land in question was not used for agricultural purpose, the claim of deduction under section 54B as against long-term capital gain earned on sale of such land was rightly disallowed.
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Capital gains - Deduction under section 54B - Allowability - Land in question being not used for agricultural purpose
Assessee-HUF claimed deduction under section 54B as against long term-capital gain earned on sale of a land. AO disallowed such claim of deduction stating that no agricultural activities were carried out on the said land as evident from report of Talati. Held: For getting benefit of section 54B, the land should have been used for agricultural purposes, which is one of the basic conditions for allowing deduction under section 54B. In instant case, since the land was not used for agricultural purpose as per report of Talati, therefore, the claim of deduction under section 54B was disallowed.
Followed:Balkrishna P. Trivedi HUF v. CIT, Ahmedabad-III Ahmedabad & Dy. CIT Circle-6, Ahmedabad and Jt. CIT Circle-5 (2), Ahmedabad in ITA No. 1225/Ahd/2013, dated 31-1-2020 : 2020 TaxPub(DT) 0749 (Ahd-Trib)
REFERRED :
FAVOUR : Against the assessee
A.Y. :
INCOME TAX ACT, 1961
Section 54EC
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