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2017 (11) TMI 1129 - AT - Income TaxClaim of exemption u/s 54B - denial of claim primarily for the reason that the land in question was not used for agricultural purpose for two years immediately preceding the date on which the said agricultural land was sold by the assessee - assessee has cultivated only kharif crop in the immediately preceding two years from the date of sale of land - Held that:- The objections raised by the Commissioner of Income-tax (Appeals) in rejecting the claim of the assessee are of trivial nature and would not impact adjudication of care issue. In our opinion the same are not warranted when the entries made in the revenue records clearly show that there was cultivation on the land. In so far as determination of two years period is concerned, the period of two is to be determined from date of sale and not the immediately two preceding financial years. The date of sale of land is January 3, 2012. Thus, the period of two years have to be reckoned from January, 2010 onwards. As has been pointed earlier that the land of the assessee is Jirayat land. The assessee could cultivate Kharif crop only on the land during the period starting from April to September. The assessee has shown from the records that the land was under cultivation during the immediately two preceding years and the assessee had grown soyabean and jowar crops on the land. The assessee has satisfied the conditions that the land is being used in two immediately preceding years for the purpose of agriculture before the date of sale. As decided in the case of Ramesh Narhari Jakhadi v. ITO (1992 (2) TMI 178 - ITAT PUNE ) that it is not necessary that the land should have used for agricultural purposes for full two years immediately preceding the date of transfer. Even if the land is used for some days in the year earlier to the preceding year it would be sufficient for compliance with the provisions of section 54B of the Act. Thus, even if the assessee has cultivated only kharif crop in the immediately preceding two years from the date of sale of land, the condition set out in section 54B for claiming benefit of exemption is complied with. Thus, in view of the facts and documents on record, we are of the considered view that the assessee has complied with all the conditions for claiming the exemption under section 54B of the Act in the assessment year under appeal. Accordingly, the impugned order is set aside and the appeal of the assessee is allowed. - Decided in favour of assessee.
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