TMI Blog2023 (5) TMI 1058X X X X Extracts X X X X X X X X Extracts X X X X ..... essee being the co-parcener) or restricted to individual only - Section 54B stand amended by Finance Act, 2012, having its effect from 01.04.2013, wherein, the HUF has specifically been incorporated by replacing the word the assessee being an individual or a parents of his with the words the assessee being an individual or parents or Hindu Undivided Family for agricultural purpose in the statue w.e.f. 01.04.2013, itself. Hence the amended provisions are applicable for the computation of Income for A.Y. 2013-2014. So the by implication of the said amended law, the assessee includes the HUF. Hence, the exemption u/s 54B after amendment is available to HUF also. Hence the objections by the A.O. in this regards, that the section is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the land in question was HUF Land and hence liable to be assessed in the hand of H.U.F. status only. Hence the assessment is not binding on assessee as individual and as such may not liable to be added in the hands of assessee as Individual. The case law has wrongly been made applicable to the facts of the case. 3. The observations of the AO are wrong to the extent That the exemption u/s 54B is not available to HUF but is restricted to Individual only . It is without going into statutory amendment of the Section 54B w.e.f. 01/04/2013, expressly including the HUF. 4. Without prejudice to the preceding grounds, the order of Ld. CIT (A) is wrong in denying the exemption u/s 54B of the Income Tax Act, failing to appreciates the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not. 8. As stated under the facts, that the assessee has sold 4 Kanal of agricultural land, jointly for Rs.80,00,000/- assessee's share was Rs.40,00,000/-. The appropriate amount has been invested, in the purchase of agricultural land in the name of wife Smt. Geeta Devi. 9. It was contended that, the land as sold was held by assessee in the status of HUF being devolve upon assessee as follows: Sh. Shobha Sh. Rati Ram Death 1941 Sh. Dharam Singh Partition of land in 2008 Sh. Satyawan (Assessee) and Brothers. 10. The father of the assessee, Sh. Dharam Singh inherited the land from his father Sh. Rati Ram on his death, who hold it as ancestral asset and died on 29.07.1941 leaving behind 3 sons; Sh. Ramdhari, Sh. Meha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of father Assets inherited by son from his father separated by partition Constitute his individual properties and not HUF properties consisting of himself and his sons. The facts of the said Chander Sen case are: One Sh. Rangi Lal and his son Sh. Chander Sen constituted an HUF. It had some immovable property and business in the name of Khushi Ram Rangi Lal. There was partial partition of HUF with regards to business and both Sh. Rangi Lal and his son Sh. Chander Sen constituted partnership firm. Sh. Rangi Lal's wife and in other predeceased him and hence at the time of death he had no other issue except Sh. Chander Sen and his sons. Hence his status at the time of death with regards to the business capital was individu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alt with the inheritance of ancestral properties for pre 1956 and post 1956 has properly been analysed it was held at para 7 (i) and 7 (iii) of the order. 7 .. (i) If a person dies after passing of the Hindu Succession Act, 1956 and there is no HUF existing at the time of the death of such a person, inheritance of an immovable property of such a person by his successorsin-interest is no doubt inheritance of an 'ancestral' property but the inheritance is as a self acquired property in the hands of the successor and not as an HUF property although the successor(s) indeed inherits 'ancestral' property i.e. a property CS(OS) No.1737/2012 Page 6 of 16 belonging to his paternal ancestor. (iii) An HUF can also ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ener and as such had right in the said property by birth. The land received under such partition again be held by the recipient as Karta Sh. Satyawan of smaller HUF consisting of assessee and his sons as coparceners and the wife of the assessee Smt. Geeta Devi as member of HUF. iii) The investment in new capital asset as agricultural land u/s 54B was made in the name of Smt. Geeta Rani, the wife of Karta as member of HUF, it is owned by the HUF and hence entitled to exemption u/s 54B of the Income Tax Act. 20. The 2nd part of the issue revolves around availability of exemption u/s 54B to HUF (the assessee being the co-parcener) or restricted to individual only. 21. In this regards, Section 54B stand amended by Finance Act, 2012, ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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