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2023 (3) TMI 1045 - AT - Income TaxDeduction u/s 54B - investment made prior to the date of sale - claim denied as new agricultural land was purchased by the assessee prior to the date of sale of agricultural land - HELD THAT:- We observe that the new property was primarily purchased out of advances received from sale of two agricultural properties. Evidently, the advances so received by the assessee were invested in the new agricultural property after the same were received and within a period of 2 years from the date of receipt of advance. In the case of Ramesh Narhari Jakhadi [1992 (2) TMI 178 - ITAT PUNE] ITAT held that investment made prior to date of transfer out of earnest money or advanced would also be eligible and should be considered as investment made out of sale proceeds for purposes of section 54B. Thus we are of the considered view that the assessee should be allowed the benefit of deduction under section 54B of the Act since the purchase in the new property has been made out of advances received towards sale of agricultural properties held by the assessee. Decided in favour of assessee.
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