TMI Blog2018 (10) TMI 735X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. We accordingly set aside the issue to the file of Ld.A.O and also direct the assessee to obtain a certificate from local revenue office/patwari about the location of alleged land and further to prove that the same is covered by the notification referred herein above. Quantum of deduction u/s 54B - AO allowed the benefit of exemption u/s 54B for the agriculture land purchased on 2.6.2008 but denied the benefit for the second plot of agriculture land purchased on 18.4.2011which was beyond the period of two years from the date of transfer of original asset - Held that:- We are of the considered opinion that the purchase of land has taken place in two parts. The affidavit signed by Shri Nagulal has been procured by the assessee muc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4B for the purchase of the land when full payment was made and the possession was taken. The deduction may please be allowed. 3. The Ld. CIT(A) and the Ld. AO erred in taxing the capital gain on the sale of agriculture land which is situated beyond the municipal area of Budnagar. Since Budnagar is not a specified city the agriculture land does not constitute the capital asset and as such taxing the capital gains is bad in law and the addition made on this account may please be deleted. 4. The Ld. CIT(A) and the Ld. AO erred in taxing the capital gain on the sale of agriculture land which was ancestral and can not be taxed in the individual capacity. Without prejudice to this the share of the mother can not be included in the hands of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above. In case the Ld.A.O is satisfied with the necessary documents furnished by the assessee then it can be inferred that the alleged land being not a capital asset therefore no capital gain is chargeable to tax. We accordingly allow the first issue for statistical purpose. 7. As regards the second issue about the quantum of deduction u/s 54B of the Act claimed by the assessee, we are of the view that this ground will become infructuous if the assessee succeeds in the first issue before the assessing authority. For sake of adjudication, even though it is academic in nature, we observe that during the course of assessment proceedings it was contended that for claiming the benefit u/s 54B of the Act, the agriculture lands were purchased i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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