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2019 (7) TMI 924 - AT - Income TaxDeduction u/s 54B - Denial of claim for the reason that the part of land was not cultivable - HELD THAT:- We find that the Co-ordinate Bench of the Tribunal in the case of Shri Mahesh Danabhai Patel [2018 (1) TMI 1514 - ITAT PUNE] has held that provisions of Sec.54B does not specify that the entire land should be used for cultivation for claiming benefit u/s 54B. It held that if any part of the land is under cultivation for two years immediately two preceding years prior to the date of transfer, it would be sufficient to claim benefit u/s 54B. Before us, Revenue has not placed any contrary binding decision in its support nor has placed any material on record to demonstrate that the aforesaid decision in the case of DCIT Vs. Shri Mahesh Danabhai Patel (supra) has been set aside or stayed by the higher Judicial Authorities. Impact of acceptance of proportionate disallowance before AO - HELD THAT:-It is assessee’s contention that the statement of AO of the A.R having agreed for disallowance is factually incorrect. In the present case, we are of the view that since the issue on merits is covered in assessee’s favour by the decision of Pune ITAT, cited hereinabove, then merely because of admission of disallowance, the assessee cannot be denied the benefit to which he is eligible. Thus, the grounds of assessee are allowed.
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