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2015 (2) TMI 572 - ITAT PANAJICapital gain on transfer of land used for agricultural purposes not to be charged in certain cases - whether CIT(A) erred in allowing the deduction U/S 54B without considering the basic condition of the said section “the assessee should have used the land for agricultural purpose for a period of two years? - Held that:- We set aside the order of CIT(A) as, in our opinion, the provisions of Sec. 54B mandates that the land must have been in the two years immediately preceding the date on which the transfer took place used by the Assessee or his parent for agricultural purpose. This section nowhere talks that the land must be used for agricultural purpose at any time in the preceding two years from the date when the transfer took place. We, accordingly, set aside the order of CIT(A) and restore the order of the AO and direct the AO not to allow the exemption to the Assessee u/s 54B. - Decided in favour of revenue.
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