TaxTMI 
TaxTMI 
2026 (5) TMI 894
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....sed u/s. 143(3) of the Act by the ITO, Ward-3, Yavatmal for the Assessment Year 2016-17. 2. The assessee has raised the following grounds of appeal: 1. That on the facts and circumstances of the case, the Appellate Order passed by Hon'ble Commissioner of Income Tax Appeal, NFAC is bad in law and therefore deserves to be quashed. 2. That on the facts and circumstances of the case, Ld. CIT (A) has erred in relying solely on the findings of Assessing Officer in the remand report without appreciating the merits of the case for adjudicating the appeal of the assessee. 3. That on the facts and circumstances of the case, the Learned CIT (A) ought to have allowed the claim of 54B of Rs. 1,43,77,547/- and delete the add....
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....ow-cause notice to the assessee requiring him to explain as to why the exemption claimed under section 54B should not be disallowed. However, the explanation furnished by the assessee was not found satisfactory by the Ld. AO. Accordingly, relying upon the documentary evidence received from the Tehsildar, the Ld. AO disallowed the claim of exemption under section 54B amounting to Rs. 1,43,77,547/- and added the same to the total income of the assessee. 4. Aggrieved by the assessment order, assessee preferred an appeal before the Ld.CIT(A). During the appellate proceedings, assessee furnished revised 7/12 extracts relating to the land sold. Since the said documents constituted additional evidence, the Ld.CIT(A) forwarded the same to the Ld....
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....Ld.CIT(A) upheld the action of the Ld.AO in disallowing the claim of exemption under section 54B of the Act. 5. Dissatisfied with the order of the Ld.CIT(A), the assessee is in appeal before this Tribunal. Learned counsel for the assessee submitted that the exemption claimed under section 54B of the Act was denied by the Ld. AO solely on the basis of the earlier land revenue records which reflected that the land was not under cultivation during the relevant period. He submitted that subsequently the Tehsildar, Patur, vide order dated 26.03.2019, rectified the mistake in the revenue records and issued revised 7/12 extracts, which clearly show that the land in question was under cultivation and agricultural activities were carried out ther....
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....ng granted, the assessee failed to file any reply or explanation controverting the findings recorded by the Ld.AO in the remand proceedings. Therefore, Ld. CIT(A) was fully justified in holding that the additional evidence furnished by the assessee lacks credibility and substance and consequently confirming the addition made by the Ld.AO. Therefore, Ld.DR prayed that the order passed by the Ld.CIT(A) be upheld and the appeal of the assessee be dismissed. 7. We have heard rival submissions and perused the material available on record. The sole issue involved in the present appeal relates to denial of exemption claimed by the assessee under section 54B of the Act amounting to Rs. 1,43,77,547/-. We observe that during the course of assessme....
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....f the Act, it is not mandatory that the land should merely be classified as agricultural land; rather, the essential requirement is that the land must have been actively used for agricultural purposes. The certificate relied upon by the learned counsel for the assessee may, at best, raise a presumption regarding agricultural use of the land, but the same cannot be treated as conclusive proof sans any corroborative evidence such as sale bills of agricultural produce, purchase invoices of seeds and fertilizers, labour payment records, or any other supporting material evidencing actual agricultural operations. In the absence of any cogent evidence demonstrating active agricultural use of the land as envisaged u/s. 54B, mere classification of t....