TaxTMI 
TaxTMI 
2018 (1) TMI 783
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....of deduction of Rs. 1422250/- claimed by the appellant under the provisions of section 54B of the Income Tax Act, 1961. 1.2 The ld CIT(A) has erred in facts in holding that the agricultural land sold by the appellant was not used for agricultural purposes. 2. Ground No. 2 2.1 The ld CIT(A) has erred both in facts and in law in confirming partial disallowance of deduction claimed by the appellant under the provisions of section 54F of the Income Tax Act. 2.2 That the ld CIT(A) has erred both in facts and in law in not allowing deduction under section 54F of the Act in relation to sum of Rs. 350000/- paid by the appellant on 05.07.2011 for purchase of new residential house. 2.3 The ld CIT(A) has erred both in facts and in law i....
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....s 54F of Rs. 2386047/- and deposited Rs. 20.50 lacs in capital gain account scheme and offered total taxable long term capital gain of Rs. 1282230/-. The ld Assessing Officer held that as the land sold was not used for agricultural purposes and as the assessee has not filed any documentary evidence whether the land was used for agricultural purposes, he denied deduction u/s 54B of Rs. 1422250/-. Further, and further he reduced the amount invested for purchase of house the purpose of deduction u/s 54F. He further held that the amount of deposits in capital gain account scheme of only Rs. 329100/- would be allowable. Consequently, he made an addition of Rs. 3880324/- to the total income of the assessee and assessed at Rs. 20967874/- vide orde....
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....not disputed by the ld DR. The above agricultural record produced before us does show at least with respect to Fasil year 1416, 1417 and 1418 the details of agricultural produce. In view of this it is apparent that land sold by the assessee shown in the sale deed was an agricultural land and further in view of the evidences produced by the assessee of agricultural produce for the relevant period which is not controverted by revenue then, assessee is eligible for deduction u/s 54B of the Act as the capital asset being land which was used for the agricultural purposes for specified number of years. In the result ground No. 1 of the appeal of the assessee is allowed. 8. Ground No. 2 of the appeal is with respect to deduction u./s 54F of Rs. 6....