Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (2) TMI 157 - ITAT AHMEDABADRevision u/s 263 - as per CIT AO had wrongly allowed the assessee exemption of capital gains claimed u/s 54B - CIT noted from the records that immovable property sold by the assessee was non-agriculture land, and therefore, the capital gains earned thereon were not eligible for exemption under section 54B - assessee contended that the conditions to be fulfilled as per the section 54B of the Act was not with regard to the nature of the land, but with respect to its user i.e. whether it was used for agriculture purpose for two years immediately preceding the date on which the transfer took place. HELD THAT:- As assessee was asked at bar whether this fact noted by the ld.Pr.CIT was correct , that neither any inquiry was made by the AO regarding fulfillment of the basic conditions for eligibility to claim exemption under section 54B of the Act nor any documents were placed by the assessee before the AO establishing the same. To this, the ld.counsel for the assessee categorically affirmed the fact and stated that neither any inquiry was conducted by the AO regarding user of land for agricultural purposes two years preceding the date of sale nor any documents filed by the assessee to the AO demonstrating the same. In the light of the same, we find no infirmity in the order of the CIT, finding the AO to have erroneously allowed the assessee’s claim of exemption under section 54B of the Act, without even conducting basic inquiry regarding fulfillment of conditions prescribed by the section for being eligible to exemption under the said section. Appeal of the assessee is dismissed.
|