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2021 (6) TMI 346 - AT - Income TaxEntitlement u/s 54B - Benefit of exemption in the hands of HUF - purchase of agriculture land - Deduction is not admissible for assessment year 2012-13 in the case of an assessee being an HUF - HELD THAT:- Hindu undivided family, entitled to the benefit of 54B, even prior to insertion of “the assessee being an individual or his parent, or a Hindu undivided family” by the finance act 2013. The assessee is a person subjected to tax under the income tax act. And the person includes even the individual as well as the Hindu undivided family. Benefit of provisions of 54B, cannot be restricted to only individual assessee - The revenue is duty-bound to make out a clear case of debarring the HUF from availing the benefit of section 54F/54B, and the assessee cannot be denied the benefit merely based on the interpretation. If the revenue wanted to tax, the assessee(HUF), then the statute should have provided specifically that the assessee used in 54B, is only restricted to living individual and is not applicable to Hindu undivided family. Further the High Court had not considered that the individual assessee and HUF, can both be used as and when context so desires and it will not lead to any absurdity. In case the assessee is Hindu undivided family, the second part of section 54B i.e “of parents of his”, would not applicable. In the case of individual assessee, the parents of the assessee fulfill criteria, then the benefit can be given. In our considered opinion harmonious interpretation is required to invoked so that the word used in the provisions would not become redundant or otiose . In our view , in case of doubt or confusion ,the benefit of any doubt in respect to taxability or exemption should be given to the assessee rather than to revenue. On facts of the present case , we find that the assessee within two years of sale of agricultural land, had invested the amount and purchase of land in accordance with the requirement of section 54B and is entitle to the benefit of 54B of the ACT. The assessee HUF, is entitled to the benefit of section 54B, of the act for the assessment year under consideration, as we are of the opinion that the word assessee used in 54B, had always included HUF and further the amendment brought on by the finance act 2013, in section 54 by inserting “the assessee being an individual or his parent, or a Hindu undivided family]” was classificatory in nature and was introduced by the Ministry with a view to extend the benefit to the Hindu undivided family. The Hindu undivided family,(HUF) has been the recognized as separate tax entity, therefore, before and after amendment , if the agricultural land, which was being used by HUF for two years prior to transfer, has been transferred by the HUF and HUF purchases any other agricultural land within two years of such transfer then it shall be entitled to the benefit of 54B / 54F.
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