2018 (4) TMI 1481 - HC - Income Tax

Claim of Exemption u/s 54B - LTCG - transfer of land used for agricultural purposes - Held that - There is no evidence in support of the contentions raised in the submissions by the ld AR. It is admitted fact that there was no agriculture activity on these lands in the two preceding years from the sale of the land. - Benefit of exemption / deduction u/s 54B cannot be allowed. - Decided against the assessee.

Summary

Issues:
- Appeal challenging Tribunal's judgment on deduction under Section 54B for capital gain on transfer of land used for agricultural purposes.

Analysis:
- The appellant challenged the Tribunal's decision on the deduction under Section 54B for capital gain on the transfer of land used for agricultural purposes. The questions of law raised included the justification of rejecting the claim of the assessee under Section 54B and the determination of whether the lands under consideration were actually used for agricultural purposes. The appellant relied on legal precedents to support their arguments, emphasizing the importance of the actual condition and intended use of the land for agricultural purposes.

- The Assessing Officer (AO) had disallowed the deduction under Section 54B, stating that only a portion of the land was eligible for the deduction as it was not used for agricultural purposes within the two years preceding the transfer. The AO's findings were upheld by the CIT(A) and the Tribunal. The Tribunal noted the absence of agricultural activity on the lands in question in the two years preceding the sale, leading to the dismissal of the appeals. The Tribunal's decision was supported by the High Court, which found no substantial question of law based on the concurrent findings.

- The Tribunal's decision was based on the lack of evidence supporting the appellant's contentions regarding the agricultural use of the lands in question. The Tribunal emphasized the absence of agricultural activity on the lands in the two years preceding the sale, leading to the confirmation of the findings by the CIT(A) and the dismissal of the appeals. The High Court concurred with the Tribunal's view, stating that no substantial question of law arose due to the concurrent findings in the case.

- The legal precedents cited by the appellant highlighted the significance of the actual condition and intended use of the land for agricultural purposes in determining eligibility for deductions under Section 54B. However, the Tribunal's decision was primarily influenced by the lack of evidence supporting agricultural activity on the lands in question in the relevant period. The High Court's agreement with the Tribunal's findings led to the dismissal of the appeals, as no substantial question of law was identified based on the concurrent conclusions reached in the case.