TMI Blog2023 (2) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... ) TMI 1826 - SUPREME COURT] held that the exemption provisions shall be interpreted strictly. The section 54B gives deduction to the assessee which is a kind of exemption provision and therefore such provisions has to be interpreted strictly. Since the land at Survey No.60/3, Village Mashrool, District Nashik was not used for agricultural purposes in the preceding two years from the date of sale, the assessee is not eligible for claim of deduction under section 54B of the Act. Accordingly, the Ground raised by assessee are dismissed. - ITA No.704/PUN/2022 - - - Dated:- 8-2-2023 - Shri S.S.Godara, Judicial Member And Dr. Dipak P. Ripote, Accountant Member For the Assessee : Shri Pramod Shingte AR For the Revenue : Shri M.G.Jasnani DR ORDER PER DR. DIPAK P. RIPOTE, AM: This appeal filed by the Assessee i.e.Sunil Kisanrao Bagul is directed against the order of ld.Commissioner of Income Tax(Appeal)[NFAC],Delhi dated 06.08.2022 for A.Y. 2014- 15emanating from the order of Assessing Officer dated 09.12.2016 passed under section143(3) of the Act, 1961. The grounds of appeal raised by the assessee are as under : 1. On the basis of the facts and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e cannot be claimed as deduction u/s 54B of the I.T. Act. For a claim u/s 54 B, the assessee has to fulfill two requirements. Firstly, the land sold should have been used for agricultural purposes before the sale. Secondly, the land purchased for claim of exemption should also be used for agricultural purposes. In the present case, the assessee has failed to fulfill the first condition. As the assessee's land was not cultivated till F.Y. 2013-14, It was proved as per 7/12 extract which was submitted by the TalathrMhasrul, Nashik that the land was not agricultural land and also not used for agricultural activities 2 years before date of transfer by assessee or any member of his family. The claim of deduction u/s 54B is clearly not allowable and is hereby disallowed to the tune of Rs1,60,59,236/- under the head Long Term Capital Gain. 3. Aggrieved by the order of the AO, the assessee filed appeal before the ld.Commissioner of Income Tax (Appeal). The ld.Commissioner of Income Tax (Appeal) upheld the order of the AO. Aggrieved by the order of the ld.Commissioner of Income Tax (Appeal), assessee filed appeal before this Tribunal. Submission of the ld.Authorised Repre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or 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, that is to say,- (i) if the amount of the capital gain is greater than the cost of the land so purchased (hereinafter referred to as the new asset), the difference between the amount of the capital gain and the cost of the new asset shall be charged under section 45 as the income of the previous year; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase, the cost shall be nil; or (ii) if the amount of the capital gain is equal to or less than the cost of the new asset, the capital gain shall not be charged under section 45; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase, the cost shall be reduced, by the amount of the capital gain. 7. We have studied the paper book filed by the assessee. At page no. 51 of the paper book there is copy of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n register of crops. (2) Subject to the provisions of sub-rule (1), the Talathi shall fix a date of his visit to the village for the purpose of that sub-rule at least seven days in advance and arrange to inform the villagers by beat of drum or by any other suitable method, about the date of his visit and its purpose and to call upon the villagers to be present in their fields [along with their khate-pustika] and witness the entries being made in the register of crops. He shall likewise give an intimation of his visit to the Sarpanch of the Village Panchayat, if any, and through him request the members of the Village Panchayat to accompany him during the crops inspection. (3) On the date fixed for his visit to the village, the Talathi shall visit every field in the village in the presence of the villagers, the members of the Village Panchayat and the Sarpanch, if any, as may be present there and make entries in the register of crops respect of each survey number or sub-division of a survey number after actual inspection. He shall allow the persons interested in the land to see the entries made by him in respect of each land. [He shall simultaneously copy out the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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