TaxTMI 
TaxTMI 
TaxTMI 
2024 (11) TMI 1023
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....te details from time to time. 3. During the course of assessment proceedings the Assessing Officer noted that the assessee has sold agricultural land for a consideration of Rs.1,80,00,000/- and has claimed deduction u/s 54B of the Act. From the verification of the Sale Agreement, he noted that the land sold was barren land on which no agricultural activity is carried out. He further noted that the agricultural land was transferred on 31.12.2015 whereas the new agricultural land was purchased on 08.10.2015 and 20.07.2016. According to the Assessing Officer, as per the provisions of section 54B of the Act, only agricultural land purchased after the date of transfer is allowed as deduction. He, therefore, asked the assessee to explain as to why the exemption claimed u/s 54B of the Act should not be disallowed and added to the total income of the assessee. 4. In response to the query raised by the Assessing Officer it was submitted that the land sold by the assessee is agricultural land as per Zone Certificate from land revenue department. It was further submitted that the first payment received was on 03.06.2015 which is to be considered as the date of relinquishment of rights u/s 5....
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....f section 54B of the Act. According to the Assessing Officer, the transfer was effected on 31.12.2015 whereas the land was purchased much prior to the transferred date. The assessee failed to produce any documentary evidence with regard to the date of possession of land given on or before 03.06.2015. He, therefore, held that the transfer will be considered as on 31.12.2015. In view of the above, the Assessing Officer rejected the claim of deduction u/s 54B of the Act. 7. In appeal, the Ld. CIT(A) / NFAC confirmed the action of the Assessing Officer. While doing so, he noted that the assessee all along has avoided filing of any verifiable evidence of agricultural activities. According to him, any agricultural income must have its share of cost on account of seeds / saplings, electricity, fertilizers, labour, etc. No such details were produced either before the Assessing Officer or before him. He further noted that as per the sale deed executed by the assessee and his family members, it was noted that the land was sold to M/s. Lohia Jain Realty which was situated at Mukaiwadi, Taluka Mulshi, Dist. Pune within the limits of Panchayat Samiti and Jilha Parishad Pune also within the lim....
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.... land) and thereby, confirming assessed total income of appellant to the tune of Rs.1,63,48,212/- as against the returned income of Rs.20,45,192/- 2. The learned CIT(A) erred in law and in facts in holding that, appellant has not used the said agricultural land for agricultural purposes in two years immediately preceding the date of transfer and thereby, confirming the denial of claim of the exemption amounting to Rs.1,43,03,020/- u/s 54B of ITA, 1961. The learned CIT(A) failed to appreciate that, appellant's occupation & source of income is only from carrying out agricultural activities of farming, animal husbandry and grown grass on the said agricultural land is used for the said activities. 3. The learned CIT(A) erred in law and in facts in holding that, appellant has not used the said agricultural land for agricultural purposes in two years immediately preceding the date of transfer without appreciating that, provisions of section 54B only requires the said agricultural land to be used for agricultural purpose and there is no pre-condition that, agricultural activities is to be carried out said land. 4. The learned CIT(A) erred in law and in facts in holding that, app....
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.... the land in question is around 21 kilometers from Mulshi. Referring to the paper book containing 380 pages, the Ld. Counsel for the assessee drew the attention of the Bench to the same and submitted that the various documents furnished before the Assessing Officer and the Ld. CIT(A) / NFAC were completely ignored by them. Referring to the assessment order of Santosh Vitthal Masurakar dated 13.03.2024 for assessment year 2016-17, he submitted that the Assessing Officer in the order passd u/s 147 r.w.s. 144 of the Act has accepted the claim of the assessee that the land sold is an ancestral agricultural land located at Mauje Mukaiwadi, Taluka Mulshi, Dist. Pune for a total consideration of Rs.11,78,00,000/-, out of which Shri Santosh Vittal Masurakar is confirming party No.3 of (1) as mentioned in page 15 of sale deed and have received his share amount of Rs.67,00,000/- by way of cheque. Referring to the copy of sale deed placed at pages 137 to 188 of the paper book, he submitted that the assessee is also one of the sellers of the said property who along with other family members have sold the entire property to Lohia Jain Realty. When all other co-owners have claimed the same as ag....
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....aim of deduction u/s 54B of the Act on the ground that the assessee could not explain to his satisfaction regarding the land in question as agricultural land as no evidence to support the claim of agricultural activity was produced before him. Further, the assessee has purchased the new agricultural land before sale of the land in question, therefore, he has violated the provisions of section 54B of the Act, according which, the assessee is required to purchase the land within a period of two years from the date of transfer. However, in the instant case, the assessee has purchased the land before the sale registration of the land in question. Therefore, the assessee is not eligible to claim deduction u/s 54B of the Act. We find the Ld. CIT(A) / NFAC confirmed the action of the Assessing Officer on the ground that the assessee all along has avoided filing of any verifiable evidence of agricultural activities. Further, the land that was sold to Lohia Jain Realty was situated at Mukaiwadi, Taluka Mulshi, Dist. Pune within the limits of Panchayat Samiti and Jilha Parishad Pune. According to the Ld. CIT(A) / NFAC, Mulshi Taluka is in subdivision of Pune district with semi-urban populati....