2023 (2) TMI 262

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....e that the assessment under section 143(3) of the Income Tax Act, 1961 was completed on 17.03.2016 for assessment year 2013-14. The assessee had sold a capital asset on 08.01.2013 in which the assessee's share of sale consideration was Rs..3,70,00,000/-. After adjusting the indexed cost of acquisition and improvement, brokerage and expenses in connection with sale, the long term capital gain was computed to be Rs..3,58,24,032/-. The assessee claimed the total long term capital gain as eligible for deduction under section 54EC of the Act to the extent of Rs..50,00,000/- and the balance of Rs..3.08 crores as deductible under section 54B of the Act. The assessee had invested the long term capital gain relating to section 54B of the Act to the ....

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....directions of the ITAT, considering the submissions of the assessee as called for and filed by the assessee and also considering the judgement of the Hon'ble Madras High Court in the case of PCIT v. A. Lalichan in T.C.A. No. 504 of 2018 dated 11.10.2018, the Assessing Officer issued a notice proposing to disallow the claim of deduction under section 54B of the Act. After considering the submissions of the assessee and also in view of the decision in the case of PCIT v. A. Lalichan (supra), the Assessing Officer has concluded that the property sold by the assessee is not an agricultural land and no agricultural activity was carried on the said land and disallowed the claim of deduction under section 54B of the Act of Rs..3,08,24,032/-. On ap....

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....00,000/- and the assessee has claimed exemption under section 54B of the Act on the ground that the land was used for agricultural purposes for many years. He also submitted that the adangal clearly shows that there are coconut trees. The case of the Assessing Officer is that to claim benefit under section 54B of the Act, the assessee has to satisfy first condition that prior to the date of sale, the assessee should carry agricultural operation except, adangal, there is no evidence to show that the assessee carried agricultural operation and denied the claim of deduction under section 54B of the Act. On appeal, the ld. CIT(A) decided the issue in favour of the assessee. On further appeal by the Revenue before the ITAT, vide order in ITA No.....