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2023 (4) TMI 890 - ITAT RAJKOTRevision u/s 263 - nature of land sold - transfer of capital assets was due to conversion of land to stock in trade and land converted into stock-in-trade could not have been agricultural land - As per CIT deduction u/s 54B cannot be allowed on the gain arising from transfer of such asset, which does not qualify as an agricultural land - HELD THAT:- Properties were purchased by the assessee prior to the date of sale of land on 02-08-2010, and section 54B of the Act requires that the assessee should have purchased the new land after the date of transfer of such agricultural property. Therefore, even in this case as well, the complete benefit of section 54B of the Act was not available to the assessee, even if the alternate contention of the assessee that the land was sold on 02-08-2010, were to be accepted. The order of the Principal CIT, we are of the considered view that there is no infirmity in the order passed by the Principal CIT in the instant facts. Even if the alternate contention of the assessee were to be accepted, then also, we observe that in the instant facts the AO has not examined the claim of the assessee for exemption u/s 54B of the Act from correct perspective. No infirmity in the order of the Principal CIT in holding that the assessing officer has not carried out proper examination of the facts of the case and has not carried out the necessary verification at the time of passing of the assessment order in respect of the assessee’s claim of deduction u/s 54B - Decided against assessee.
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