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TMI Blog2012 (4) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 143(3). The assessee and his co-owners sold 1.81 acre of land in the relevant previous year. The assessee was having 1/3rd share in the land. From his share of sale consideration, the assessee purchased another piece of agricultural land and claimed exemption under section 54B of the Income Tax Act, 1961 (hereinafter referred to as "the Act") to the extent of investment made. The Assessing Officer disallowed the entire claim of the assessee under section 54B and computed capital gains. The assesse further claimed expenditure incurred towards improvement of land during the year 1982-83. The said expenditure was also disallowed by the Assessing Officer. 3. Aggrieved by the assessment order, the assessee filed an appeal before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the claim of the appellant for exemption under section 54B cannot be entertained and the disallowance made by the Assessing Officer is confirmed. 4. Aggrieved by the order of the learned Commissioner of Income Tax(Appeals), now the assessee has come in appeal before us. 5. The learned counsel for the assessee submitted that the assessee is an agriculturist and the land is an agricultural land. The CIT(A) and the Assessing Officer failed to take this fact into consideration and disallowed exemption under section 54B of the Act. The Assessing Officer erred in holding that the land is not agricultural land. He further submitted that the Assessing Officer has erred in disallowing the expenditure incurred by the assessee towards the improvemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 54B(1) is reproduced herein below:- "54B(1): Subject to the provisions of sub-section (2) where the capital gain arises from the transfer of a capital asset being land which in the two years immediately preceding the date on which the transfer took place, was being used by the assessee or a parent of his for agricultural purposes and the assessee has within a period of two years after that date, purchased any other land for being used for agricultural purposes then, instead of the capital gain being charged to income tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section. " 9. As per the above provisions of sub-section (1) of section 54B, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as evidence superior to revenue record which clearly shows that there was no cultivation of crop / agricultural activity on the land in question owned by the assessee in the past two years preceding the date of sale. The learned counsel for the assessee during the course of his submission placed on record photocopies of some bills to show that agricultural activity was undertaken by the assessee on the land in question. However, these bills were never produced either before the Assessing Officer or before the learned Commissioner of Income Tax(Appeals). These bills / invoices are nothing but an afterthought to fill the lacuna. Therefore no reliance can be placed on such bills either. The assesse/appellant has further claimed deduction on a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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