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2018 (10) TMI 1342 - AT - Income TaxEligibility for deduction u/s.54B - non fulfillment of mandatory conditions laid down - capital gain on transfer of land used for agricultural purposes not to be charged in certain cases - land should have been used for agricultural purposes at least from 24/03/2011 to 25/03/2013 but the land was not used for the agricultural purposes as the same was converted in to non agricultural land - assessee explained that 25% of undivided share of agricultural land was sold to Sanjay Keshavlal patel misused the power of attorney and converted agricultural land into nonagricultural and when it is come to notice to the assessee it was subsequently cancelled Held that:- It is undisputed fact that Sanjay K Patel was one of the confirming parties of sale of the land on 26th March 13 which demonstrate that Sanjay K Patel was one of the stakeholders along with the assessee and fully associated with the use and sale of the land. The assessee along with Sanjay Patel and other member of group were engaged in the business of colonization and they have placed scheme "Dolphin" in the land sold by assessee. The assessee has neither substantiated with any relevant material that that co-owner Sanjay K Pate has misused the power of attorney nor filed any evidence of any legal action taken against him for any unauthorized using of the power of attorney. Discrepancies were also noticed in the revenue records as evident from the letter dated 22nd March, 2016 of Mamlatdar affirming that the impugned land was a non-agricultural land and the Talati had inadvertently made entry of agricultural crop as jwar in the record. The assessee has been regularly filing income tax return but he has not reported any agricultural income in the return of income to prove that any agricultural income was earned by him. The aforesaid land was converted to non agricultural land on 26/05/2011 and the NA was cancelled only on 15/03/2013 just 11 days before its sale on 25/03/2013. In view of the above facts we observe that as per record the impugned land in question remained non agricultural land for the period 26/05/2011 to 15/03/2013. After considering the above facts, we are inclined with the findings of the Ld.CIT (A) that assessee has failed to fulfill the condition laid down in the provision of section 54B of the act pertaining to capital gain on transfer of land used for agricultural purposes not to be charged in certain cases. Therefore, we consider that Ld. CIT(A) has correctly disallowed the claim of exemption u/s 54 B - decided against assessee
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