Exemption claimed u/s 54B - Capital Gain on sale of agriculture ...

Taxpayer's Section 54B Exemption for Agricultural Land Sale Upheld; AO's Presumption on Grass Cultivation Overruled.

January 5, 2022

Case Laws     Income Tax     AT

Exemption claimed u/s 54B - Capital Gain on sale of agriculture land - AO has not made any investigation on the assertion of assessee. AO presumed that growing of grass is not agriculture activities. We noted that the AO arrived on conclusion on the basis of his presumption that Grass is not agriculture product. AO has not brought any adverse evidence to counter the evidence furnished by the assessee. - Mere fact that the assessee has not shown agriculture income from the piece of land would not change its character. In our view, in absence of any adverse material, the presumption of AO that no income is shown from the sale of Ghass is not justified. - AT

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