9911796707
TMI Blog2025 (4) TMI 1298X X X X Extracts X X X X X X X X Extracts X X X X ..... essment Year 2008-09. 2. In this appeal, the assessee has raised the following grounds: "1. The learned Commissioner of Income Tax (Appeals), NFAC, erred in passing an order u/s 250 confirming the additions made by the Learned Assessing Officer without giving an adequate opportunity of being heard. 2. The learned Commissioner of Income Tax (Appeals), NFAC, erred in not granting the exemption of section 54B without appreciating that, the agricultural land was used by the watchmen/workers/caretakers for conducting agricultural activity for themselves as well as for the appellant." 3. The sole issue that arises for our consideration in the present appeal pertains to the denial of the deduction claimed under section 54B of the Act. 4. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and claimed to be used for agricultural purpose, the assessee was asked to show cause as to why the deduction claimed under section 54B of the Act be not denied. The Assessing Officer vide order dated 29.03.2023 passed under section 143(3) r.w. section 254 of the Act, after considering the submissions of the assessee, rejected the claim of the assessee regarding agricultural activity being done on the land on the basis of the certificate dated 13.12.2010 issued by the Talati in response to the notice issued under section 133(6) of the Act, wherein it is mentioned that the said land is situated within 3 kms from the local limits of the Lonavala Municipal Council. Accordingly, on the basis that the land sold by the assessee was not an agricul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t since the land sold was not contested to be a capital asset, therefore, the deduction under section 54B of the Act is not available to the assessee, as the same is only allowable in the case of sale of agricultural land and re-investment of the same in the agricultural land. The learned CIT(A), vide impugned order, also upheld the findings of the AO on the basis that the assessee has failed to substantiate its claim that the land sold was agricultural land. 8. During the hearing, the learned Authorized Representative ("learned AR") did not dispute the fact that the land sold was a capital asset, as the Talati vide its certificate dated 13.12.2010 certified the land to be within 3 kms from the local limit of the Lonavala Municipal Council ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dual or his parent, or a Hindu undivided family for agricultural purposes (herein-after referred to as the original asset), and the assessee has, within a period of two years after that date, purchased any other land for being used for agricultural purposes, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say,- (i) if the amount of the capital gain is greater than the cost of the land so purchased (hereinafter referred to as the new asset), the difference between the amount of the capital gain and the cost of the new asset shall be charged under section 45 as the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposited under this sub-section is not utilised wholly or partly for the purchase of the new asset within the period specified in subsection (1), then,- (i) the amount not so utilised shall be charged under section 45 as the income of the previous year in which the period of two years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid." 11. From the plain reading of the provisions of section 54B of the Act, we find that the same provides for deduction in case of transfer of a capital asset, being land which, in the two years immediately preceding the date of transfer, was used by the assessee or his parent for agricultural ..... X X X X Extracts X X X X X X X X Extracts X X X X
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