2023 (3) TMI 475 - AT - Income Tax

Exemption u/s 54B - mode of transfer of property - income from agriculture - Proof of purchase of land - HELD THAT:- As gone through the Khara Girdawari which was submitted before the ld CIT(A) reflecting the crops grown in Kharif and Rabi.

Since the land sold has been proven to be used for agriculture purpose in the preceding two years and the land purchased by the assessee has been proved to be agriculture land and the purchase has taken place within the stipulated period allowed by the Income Tax Act, 1961, we hold that the assessee is eligible for claim of exemption u/s 54B of the Act and also the receipt of Rs. 2 lacs be treated as income from agriculture. Appeal of the assessee is allowed.