Section 54d

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2012 Need help on a tax query. A portion of my industrial land has been taken over by govt. through forceful acquisition. I would like to use Section 54D to invest the proceeds from the acquisition for some construction activity in the remaining land. The land was acquired in 2011 but before that, it was occupied by a tenant who vacated through court order after a long legal battle. As per 54D, I should have operated some industrial activity in that said property but since it was occupied in a court battle, I could not do that. Can someone please advise me if I can still go ahead with Section 54D, and will my valid justification that the property was not available due to legal battle prior to acquisition for my industrial activity be considered by the IT authorities?Kindly advise.

CA. Hari Kishan

CA. Hari Kishan (Expert)
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07 February 2012 It is a very difficult proposition and not a very strong point of arguments.. however for sure a matter of litigation.. must try it..

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2012 Thanks...Since there was no way we could have used that land 2 years prior to the acquisition as it was entangled in court case, we want to see how we can get some tax relief on this forceful acquisition. The other option is to go with 54f but that is to purchase a residential property which we don't need now, and we want to use this money for reconstruction in our existing land.

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