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2016 (8) TMI 410 - AT - Income TaxApplicability of provisions of section 50C on the basis of circle rate at the time of execution of sale deed - Held that:- Circle rate prevailing at the time of agreement to sell has to be considered for applying the provisions of section 50C. See ITO vs. Modipon Ltd [2015 (1) TMI 609 - ITAT DELHI] Claim of deduction u/s. 54B - Held that:- There is no requirement that the investment in agriculture land has to be made out of sale proceeds and as such the assessee is eligible to claim deduction u/s. 54B for purchase of lands even presuming that payment for purchase of land was not made out of receipt of sale proceeds on sale of asset. Therefore, there is no justification for restricting claim of exemption u/s. 54B of the Act, thus we reverse the finding of the Ld. CIT(A) on this issue and allow the deduction as accepted by the AO at ₹ 81,05,300/-, as a result the ground raised by the Assessee is allowed.
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