TaxTMI 
TaxTMI 
2017 (10) TMI 1141
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....s are emanating from same set of facts and identical grounds have been raised in both the appeals, these appeals are taken up together for adjudication and are decided by this common order. 2. For the sake of convenience and brevity the facts are taken from ITA No. 382/PUN/2015. The assessee in its return of income for the assessment year 2007-08 disclosed income from Long Term Capital Gain on sale of agriculture land. The assessee had ½ share in the agriculture land comprising in S. No. 58/1/1-A & S. No. 58/1/2-A admeasuring 11782 sq. mtrs. at Mauje Manjari Budruk, Tal.-Haveli, Distt.-Pune. The assessee received Rs. 1,09,21,914/- as his ½ share from the sale of agriculture land. The assessee after applying indexed cost of ....
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....of assessee with regard to allowance of exemption claimed u/s. 54B of the Act. Now, the assessee is in second appeal before the Tribunal. 3. Shri P.I. Patwa appearing on behalf of the assessee fairly admitted that the assessee is an HUF. The ld. AR submitted that the provisions of section 54B were amended by the Finance Act, 2012 w.e.f. 01-04-2013 thereby making HUF eligible for claiming exemption u/s. 54B of the Act. The ld. AR submitted that since the provisions of section 54B of the Act are in the nature of beneficial legislation, the amendment made in the section is thus has to be read as effective retrospectively. In support of his submission the ld. AR placed reliance on the decision of Delhi Bench of the Tribunal in the case of K.....
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....ection cannot be granted to any other person other than individuals prior to amendment. In support of his submissions, the ld. DR placed reliance on the decision of Hon'ble Madras High Court in the case of Commissioner of Income Tax Vs. G.K. Devarajulu reported as 191 ITR 211. The ld. DR submitted that the Hon'ble Madras High Court has categorically held that the provisions of section 54B would not apply to HUF. Similar amendment was made to the provisions of section 54 by the Finance Act, 1997 whereby HUF was included. The Hon'ble High Court held that if the intention of the Parliament was to include HUF in section 54B then the amendment would have been carried out in respect of section 54B as well along with section 54. The ld. DR prayed ....
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...., within a period of two years after that date, purchased any other land for being used for agricultural purposes." After amendment to section 54B, along with individuals, HUF is also made eligible for the benefit of exemption under the provisions of said section. 6. We find that the Hon'ble Madras High Court in the case of Commissioner of Income Tax Vs. G.K. Devarajulu (supra) had occasion to deal with eligibility of HUF for claiming exemption u/s. 54B of the Act in period prior to amendment. The assessment year under appeal was 1972-73. The question of law before the Hon'ble Court was : "Whether, on the facts and in the circumstances of the case, the Tribunal's view that the Hindu undivided family is entitled to exempti....
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....e, who has a parent, or a parent of his. That would mean user only by such an assessee, as has a parent, or, user by a parent of the assessee. The user "by his parent" contemplated and the word "his" employed, can have reference only to a living person like an individual and not to an entity or person like a Hindu undivided family. The user by the parent, which would also qualify for claiming the benefit of section 54B would be inapplicable to a case where the assessee is none other than an individual. In other words, when the meaning of the word "assessee" used is ascertained from the meaning of the words associated with it, it is clear from the company the word "assessee" keeps, that what had been contemplated is only an individual and no....
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....t of exemption u/s. 54B to HUF as similar amendment was carried out by the Parliament in section 54 to include HUF. The relevant extract of the observations of the Hon'ble High Court in this regard reads as under : "It would also be pertinent to point out that, by s. 19 of the Finance Act, 1987, in s. 54(1) of the Act, an HUF has also been included. The legislative change thus brought about is also an indication that what had been contemplated by "assessee" under s. 54(1) of the Act was not an HUF, but only an individual. While a change had been brought in in s. 54(1) of the Act, s. 54B of the Act had been left intact. This, in our view, also clearly indicates that though Parliament was fully alive to the need for including an HUF ....