Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 1459 - AT - Income TaxDeduction u/s 54B - CIT(A) had accepted the Assessee's claim that the land sold was an agricultural land and had also allowed the Assessee's claim of deduction u/s 54B to the extent of ₹ 1 crore representing the amount paid by the Assessee to the seller of the agricultural land - Held that:- A perusal of the land records, more specifically Form No. II, in Nagarcem Palolem shows that the land sold by the Assessee has been recorded in the Revenue records as an agricultural land. In these circumstances, as the Revenue records of the State clearly hold the land which has been sold as an agricultural land, we are of the view that the finding of the ld. CIT(A) in holding the land sold by the Assessee as an agricultural land does not call for any interference. The cost of the land in the Assessee's case being the figure as disclosed in the sale deed is only ₹ 27,14,288/-, the Assessee would be entitled to the deduction u/s 54B only to the extent of this amount and not ₹ 1 crore as allowed by the ld. CIT(A). The Assessee has relied upon the decision of Janardan Dass reported in [2007 (10) TMI 172 - ALLAHABAD HIGH COURT] therein assessee had purchased a land alongwith tubewells and trees which were part of the agricultural land. This is not a case where the Assessee had paid separately for the land and separately for the plantation whereas in the Assessee's case the sale deed has been registered only for ₹ 27,14,288/-. Consequently, this decision of the Hon'ble Allahabad High Court does not help the Assessee's case. In the circumstances, the order of the ld. CIT(A) on this issue stands modified and the AO is directed to grant the Assessee the benefit of deduction u/s 54B to the amount as disclosed by the Assessee in the sale deed being ₹ 27,14,288/-. In the result, the appeal of the Revenue is partly allowed.
|