TMI Blog2002 (5) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... al. The Revenue record supports the claim. Thus, the Tribunal was justified in holding that the conditions laid down for claiming relief under section 54B stood satisfied. Once it is so, the other contentions about the land being located in the commercial area or the land having been partially utilised for non-agricultural purposes or that the vendees have also purchased it for non-agricultural purposes, are totally irrelevant considerations for the purposes of application of section 54B – Exemption allowed - - - - - Dated:- 22-5-2002 - Judge(s) : JAWAHAR LAL GUPTA., N. K. SUD. JUDGMENT The judgment of the court was delivered by N.K. Sud J. - The Revenue has filed this appeal against the order of the Income-tax Appellate Tribunal, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In support of her claim, she produced registered deed, khasra girdawari, etc. The Assessing Officer also obtained khasra girdawari from the patwari and got the site inspected. The Assessing Officer rejected the claim of the assessee holding that the land sold by the assessee was not agricultural land. He based his decision on the following factors: (i) the land was situated within the municipal limits of Jagadhari adjoining a commercial area ; (ii) the assessee had jointly purchased a huge chunk of land in 1976 and had constructed seven godowns in the year 1977-78 on a part thereof; (iii) only poplar plantation stood on the land till 1988-89. Further only fodder grass and vegetables were grown in the kharif season while the land rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to non-agricultural user. After hearing learned counsel for the Revenue and perusing the order of the authorities below, we find no merit in this appeal. The sole question for determination is whether the assessee is entitled to relief under section 54B of the Act or not. Sub-section (1) of section 54B of the Act, which is relevant for our purposes, reads as under: "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 (hereinafter referred to as the original asset), and the assessee has, within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for agricultural purposes ; and (ii) the assessee has purchased the land within a period of two years after the sale of the above land for being used for agricultural purposes. There is no dispute regarding condition No. (ii). The dispute is regarding condition No. (i). For the purposes of this condition, it is not necessary to go into the various authorities referred to by the Assessing Officer or the Commissioner of Income-tax (Appeals) to determine whether the land was agricultural land or not. The exemption is available to the seller of "a capital asset being land". It does not restrict the benefit to agricultural land only. However, the land against which the benefit is sought must have been used by the assessee or his parent for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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