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2015 (7) TMI 73 - AT - Income TaxEligibility exemption u/s.54B with regard to the on money received on sale of agriculture land - undisclosed income of the block period - Held that:- Assessee has received ₹ 1,90,88,759/- (including on money) (Assessing Officer has taken ₹ 95,25,836/- only on which the exemption u/s.54B was claimed) on account of sale consideration of of Gatrad land. The said sale consideration includes mount of sale consideration shown in sale deed and on money received thereon. Out of sale consideration received, assessee has invested ₹ 92,47,100/- (Assessing Officer has mistakenly taken as ₹ 90,90,582/-) in another new agriculture land within the prescribed period. Assessee is entitled for relief of exemption u/s.54B to the extent of his contribution of ₹ 92,47,100/- (which has been mistakenly taken by Assessing Officer as ₹ 90,90,582/-) towards purchase of new agriculture land out of sale consideration received of ₹ 1,90,88,759/- (including on money) (Assessing Officer has taken ₹ 95,25,836/- only) on account of sale of Gatrad agriculture land. Assessing Officer has not allowed the exemption u/s.54B on the ground that basic requirement of claim of exemption u/s.54B is that first condition of land should be used by assessee being an individual or his parent or HUF for agriculture purpose has not been complied with. We have decided this issue in preceding favour in favour of assessee. Regarding allowability of claim of claim of ‘’on-money’’ the ld. AR drew our attention to the decision of Hon’ble Gujarat High Court in the case of CIT vs. Suman Paper & Boards Ltd. (2009 (2) TMI 66 - GUJARAT HIGH COURT) wherein it was held that in view of amendment on the provisions of section 158BB by the Finance Act, 2002 with retrospective effect from 1st July, 1995 the assessee was entitled to claim deduction under sec.80-I or section 80-IA in block assessment of the block period. The Revenue has acknowledged the benefit of deduction with regard to undisclosed income of the block period. Thus assessee is entitled for getting benefit of exemption under section 54B with regard to the ‘on money’. See Commissioner of Income Tax, Central II, Versus M/s. Sheth Developers (P) Ltd. [2012 (8) TMI 159 - BOMBAY HIGH COURT] - Decided in favour of assessee.
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